Multilevel governance is a result of the growing political capacity of the European Union and subnational actors, which assesses the weakening of the traditional state-centered regulation model. Three major dynamics are promoted by the multilevel governance scheme: territorialization, hybridization, and individualization. These dynamics are also core components of the education/employment/training policy nexus dedicated to vulnerable youth. Hence, one question emerges: what kind of links can be made between the capability approach developed by Amartya Sen and this new political regulation scheme? In this chapter, the compatibility of the multilevel governance model with the capability approach is discussed in a theoretical mode and with references to vulnerable youth policies.