This paper focuses on the interplay of European and national higher education policy in implementing a joint degree Erasmus Mundus programme on institutional level. We utilise the stakeholder approach to highlight and contrast the differing internationalisation rationales. Specifically, we analyse how the impact of external stakeholders (European Commission, national governments) and their policies are affecting higher education institutions at institutional and programme levels. As a particular case, we utilise the Finnish higher education system and the implementation of a joint degree programme 'Master in Research and Innovation in Higher Education' (MARIHE). We conclude that in Finland Erasmus Mundus programmes have not triggered significant legislative changes at national level supporting the goals attached to the Erasmus Mundus instrument. However, Erasmus Mundus provides important stimulus to institutions and their programmes to find unique ways to collaborate within the boundaries of existing legislative frameworks. The paper also shows that a detailed analysis of the Erasmus Mundus programme can be used as a concrete illustrative example of the multifaceted picture of the EU higher education policy.