This paper deals with two strongly related subjects – indicators and their role in policy. It provides a thorough analysis of the concepts of indicators and their use in the current EU policy context. Furthermore, the shortcoming of this practice and possible solutions are exemplified and practical cases are provided. Indicators are embedded in the policy cycle and their potential to provide accompanying information for evidence-based decision making is shown. Moreover, the combination of these single pieces of information into assessments and evaluations is explained. The paper concludes with recommendations for the future use of indicators in EU policies.