Government 2.0 is often presented as a means to reinforce the relation between state and citizens in an information age. The promise of Government 2.0 is impressive but its potential has not or hardly been realized yet in practice. This paper uses insights from various disciplines to understand Government 2.0 as an institutional transformation. It focuses on three key issues - leadership in government, incentives for citizens and mutual trust - and our analysis shows that Government 2.0 efforts are too often guided by overly optimistic and simplified ideas about these issues. Our discussion suggests that there are no easy, one-size-fits-all ways to address challenges of leadership, citizen incentives and trust: a contextual approach and hard work is needed to tackle these challenges. Realizing Government 2.0 means looking beyond the technology and understanding its potential in a specific situation
