diff --git a/DESIGN.md b/DESIGN.md
index c1c64c0..bdcd7c3 100644
--- a/DESIGN.md
+++ b/DESIGN.md
@@ -81,9 +81,7 @@ communications:
     
     
 Handling of capabilities: 
-1. capabilities at namespace level apply to each individual pod in the 
-   namespace
-2. a capability is a list of templates. 
+1. capabilities at namespace level is defined a template that gets the namespace name.  
 
    Ingress template
       
diff --git a/cmd/policygen/config.go b/cmd/policygen/config.go
index af9c18f..da52a97 100644
--- a/cmd/policygen/config.go
+++ b/cmd/policygen/config.go
@@ -1,12 +1,17 @@
 package main
 
 import (
+	"bytes"
 	"errors"
 	"fmt"
 	"github.com/goccy/go-yaml"
 	"net"
+	"os"
+	"slices"
 )
 
+var PREDEFINED_APPS = []string{"apiserver"}
+
 func validateCIDR(cidr string) error {
 	_, _, err := net.ParseCIDR(cidr)
 	return err
@@ -36,21 +41,24 @@ func (c CIDR) MarshalYAML() ([]byte, error) {
 
 // Network represents each network entry in the YAML
 type Network struct {
-	Name   string `yaml:"name"`
-	CIDR   CIDR   `yaml:"cidr"`
-	Except []CIDR `yaml:"except,omitempty"`
+	Name   string   `yaml:"name"`
+	CIDR   CIDR     `yaml:"cidr"`
+	Except []CIDR   `yaml:"except,omitempty"`
+	Ports  []string `yaml:"ports,omitempty"`
 }
 
 type Application struct {
 	Name        string            `yaml:"name"`
 	Ports       []string          `yaml:"ports,omitempty"`
 	MatchLabels map[string]string `yaml:"matchLabels"`
+	Namespace   string            `yaml:"-"`
 }
 
 type Namespace struct {
-	Name         string        `yaml:"name"`
-	Capabilities []string      `yaml:"capabilities"`
-	Applications []Application `yaml:"applications"`
+	Name         string         `yaml:"name"`
+	Open         bool           `yaml:"open"`
+	Capabilities []string       `yaml:"capabilities"`
+	Applications []*Application `yaml:"applications"`
 }
 
 type Communication struct {
@@ -61,9 +69,9 @@ type Communication struct {
 
 // Config represents the top-level YAML structure
 type Config struct {
-	Networks       []Network       `yaml:"networks,omitempty"`
-	Namespaces     []Namespace     `yaml:"namespaces,omitempty"`
-	Communications []Communication `yaml:"communications,omitempty"`
+	Networks       []*Network       `yaml:"networks,omitempty"`
+	Namespaces     []*Namespace     `yaml:"namespaces,omitempty"`
+	Communications []*Communication `yaml:"communications,omitempty"`
 }
 
 func (c Config) Validate() error {
@@ -88,8 +96,15 @@ func (c Config) Validate() error {
 		networks[network.Name] = true
 	}
 
-	// application names must be unique
-	apps := make(map[string]bool)
+	// application names must be unique and may not conflict with predefined applications
+	apps := map[string]bool{
+		"apiserver": true,
+	}
+	// application names may also not conflict with network names.
+	for _, network := range c.Networks {
+		apps[network.Name] = true
+	}
+
 	for _, namespace := range c.Namespaces {
 		for _, app := range namespace.Applications {
 			if apps[app.Name] {
@@ -115,3 +130,54 @@ func (c Config) Validate() error {
 
 	return errors.Join(errs...)
 }
+
+func (c Config) GetApplication(name string) (*Application, *Network, string) {
+	if slices.Contains(PREDEFINED_APPS, name) {
+		return nil, nil, name
+	}
+	for _, network := range c.Networks {
+		if name == network.Name {
+			return nil, network, ""
+		}
+	}
+	for _, ns := range c.Namespaces {
+		for _, app := range ns.Applications {
+			if app.Name == name {
+				return app, nil, ""
+			}
+		}
+	}
+	return nil, nil, ""
+}
+
+func LoadConfig(file string) (*Config, error) {
+	fmt.Fprintf(os.Stderr, "Reading config %s\n", file)
+	yamlFile, err := os.ReadFile(file)
+	if err != nil {
+		return nil, fmt.Errorf("Error reading YAML file: %v", err)
+	}
+
+	// Parse the YAML content
+	dec := yaml.NewDecoder(bytes.NewReader(yamlFile),
+		yaml.UseJSONUnmarshaler(),
+		yaml.DisallowUnknownField(),
+	)
+	var config Config
+	err = dec.Decode(&config)
+	if err != nil {
+		return nil, fmt.Errorf("Error parsing YAML: %v", err)
+	}
+	err = config.Validate()
+	if err != nil {
+		return nil, err
+	}
+
+	// every application must have its namespace field set
+	for _, ns := range config.Namespaces {
+		for _, app := range ns.Applications {
+			app.Namespace = ns.Name
+		}
+	}
+
+	return &config, nil
+}
diff --git a/cmd/policygen/generator.go b/cmd/policygen/generator.go
new file mode 100644
index 0000000..2341572
--- /dev/null
+++ b/cmd/policygen/generator.go
@@ -0,0 +1,115 @@
+package main
+
+import (
+	"fmt"
+	"io"
+	"log"
+	"os"
+)
+
+type Generator interface {
+	GenerateNamespace(writer io.Writer, namespace *Namespace) error
+	GenerateCommunicationRule(writer io.Writer, app *Application, ingress *Ingress, egress *Egress) error
+}
+
+type Peer struct {
+	Applications []*Application
+	Networks     []*Network
+	Predefined   []string
+}
+
+func (p *Peer) append(app *Application, network *Network, predefined string) {
+	if app != nil {
+		p.Applications = append(p.Applications, app)
+	}
+	if network != nil {
+		p.Networks = append(p.Networks, network)
+	}
+	if predefined != "" {
+		p.Predefined = append(p.Predefined, predefined)
+	}
+}
+
+func (p *Peer) Empty() bool {
+	return len(p.Applications)+len(p.Networks)+len(p.Predefined) == 0
+}
+
+func (p Peer) String() string {
+	res := ""
+	for _, app := range p.Applications {
+		res += "app:" + app.Name + " "
+	}
+	for _, net := range p.Networks {
+		res += "net:" + net.Name + " "
+	}
+	for _, pre := range p.Predefined {
+		res += "pre:" + pre + " "
+	}
+	return res
+}
+
+type Ingress struct {
+	Peer
+}
+type Egress struct {
+	Peer
+}
+
+func Generate(writer io.Writer, generator Generator, config *Config) error {
+
+	log.Printf("CONFIG %+v", config)
+	for _, ns := range config.Namespaces {
+		err := generator.GenerateNamespace(os.Stdout, ns)
+		if err != nil {
+			return err
+		}
+	}
+
+	// Loop over all applications and gather the ingress and egress for each application
+	var applications = make(map[string]*Application)
+	var ingresses = make(map[string]*Ingress)
+	var egresses = make(map[string]*Egress)
+	for _, ns := range config.Namespaces {
+		for _, app := range ns.Applications {
+			applications[app.Name] = app
+			if ingresses[app.Name] == nil {
+				ingresses[app.Name] = &Ingress{}
+			}
+			if egresses[app.Name] == nil {
+				egresses[app.Name] = &Egress{}
+			}
+		}
+	}
+
+	for _, communication := range config.Communications {
+		for _, from := range communication.From {
+			appFrom, networkFrom, predefinedFrom := config.GetApplication(from)
+			for _, to := range communication.To {
+				appTo, networkTo, predefinedTo := config.GetApplication(to)
+				if appFrom != nil {
+					// we have an egress
+					egress := egresses[from]
+					egress.append(appTo, networkTo, predefinedTo)
+				}
+				if appTo != nil {
+					// we have an ingress
+					ingress := ingresses[to]
+					ingress.append(appFrom, networkFrom, predefinedFrom)
+				}
+			}
+		}
+	}
+
+	// loop over all apps and configure them
+	for app, ingress := range ingresses {
+		egress := egresses[app]
+		if !ingress.Empty() || !egress.Empty() {
+			fmt.Fprintf(os.Stderr, "RULE %s\n", app)
+			fmt.Fprintf(os.Stderr, "  IN %s\n", ingress)
+			fmt.Fprintf(os.Stderr, "  OUT %s\n", egress)
+			generator.GenerateCommunicationRule(writer, applications[app], ingress, egress)
+		}
+	}
+
+	return nil
+}
diff --git a/cmd/policygen/main.go b/cmd/policygen/main.go
index c1e5d8a..8f9f7fc 100644
--- a/cmd/policygen/main.go
+++ b/cmd/policygen/main.go
@@ -1,10 +1,10 @@
 package main
 
 import (
-	"bytes"
 	"fmt"
 	"github.com/goccy/go-yaml"
 	"github.com/spf13/cobra"
+	"log"
 	"os"
 )
 
@@ -18,32 +18,39 @@ func execute(files []string, options *Options) error {
 		return fmt.Errorf("File expected")
 	}
 	for _, file := range files {
-		fmt.Fprintf(os.Stderr, "Reading config %s\n", file)
-		yamlFile, err := os.ReadFile(file)
-		if err != nil {
-			return fmt.Errorf("Error reading YAML file: %v", err)
-		}
-
-		// Parse the YAML content
-		dec := yaml.NewDecoder(bytes.NewReader(yamlFile),
-			yaml.UseJSONUnmarshaler(),
-			yaml.DisallowUnknownField(),
-		)
-		var config Config
-		err = dec.Decode(&config)
-		if err != nil {
-			return fmt.Errorf("Error parsing YAML: %v", err)
-		}
-		err = config.Validate()
+		config, err := LoadConfig(file)
 		if err != nil {
 			return err
 		}
 		fmt.Printf("PARSED %+v\n", config)
+
+		policyTemplates, err := NewPolicyTemplates()
+		if err != nil {
+			return err
+		}
+		var generator Generator
+		generator = NetworkPolicyGenerrator{
+			config:          config,
+			policyTemplates: policyTemplates,
+		}
+		Generate(os.Stdout, generator, config)
+
 	}
 	return nil
 }
 
 func main() {
+
+	val := map[string]string{
+		"abc": "1",
+	}
+	data, err := yaml.Marshal(val)
+	if err != nil {
+		panic(err)
+	}
+	log.Printf("val %s", string(data))
+	//os.Exit(1)
+
 	options := Options{
 		cni:        "cilium",
 		policyType: "netpol",
diff --git a/cmd/policygen/netpol_generator.go b/cmd/policygen/netpol_generator.go
new file mode 100644
index 0000000..2f6077c
--- /dev/null
+++ b/cmd/policygen/netpol_generator.go
@@ -0,0 +1,61 @@
+package main
+
+import (
+	"fmt"
+	"io"
+	"log"
+	"os"
+)
+
+type NetworkPolicyGenerrator struct {
+	config          *Config
+	policyTemplates *PolicyTemplates
+}
+
+func (g NetworkPolicyGenerrator) GenerateNamespace(writer io.Writer, namespace *Namespace) error {
+	fmt.Fprintf(os.Stderr, "Namespace %s\n", namespace.Name)
+
+	templates := g.policyTemplates.NamespaceTemplates("netpol", namespace.Capabilities)
+	log.Printf("Got %d templates", len(templates))
+
+	for _, template := range templates {
+		err := template.Execute(writer, &namespace)
+		if err != nil {
+			return fmt.Errorf("Error using template %s: %w", template.Name(), err)
+		}
+	}
+	return nil
+}
+
+func (g NetworkPolicyGenerrator) GenerateCommunicationRule(
+	writer io.Writer,
+	app *Application,
+	ingress *Ingress,
+	egress *Egress) error {
+
+	if len(ingress.Applications)+
+		len(ingress.Networks)+
+		len(egress.Applications)+
+		len(egress.Networks) > 0 {
+		// non-trivial regular network policy
+
+		tmpl := g.policyTemplates.ApplicationTemplate("netpol")
+		log.Printf("Found template %v for pod %s", tmpl, app.Name)
+		if tmpl != nil {
+
+			log.Printf("EXECUTING %s", app.Namespace)
+			err := tmpl.Execute(writer, map[string]any{
+				"app":     app,
+				"ingress": ingress,
+				"egress":  egress,
+				"labels": map[string]string{
+					"policy-generator": "1",
+				},
+			})
+			if err != nil {
+				return err
+			}
+		}
+	}
+	return nil
+}
diff --git a/cmd/policygen/templates.go b/cmd/policygen/templates.go
index 7f23905..9ce5b61 100644
--- a/cmd/policygen/templates.go
+++ b/cmd/policygen/templates.go
@@ -2,10 +2,10 @@ package main
 
 import (
 	"fmt"
-	"html/template"
 	"io/fs"
 	"os"
 	"strings"
+	"text/template"
 )
 import "embed"
 import sprig "github.com/Masterminds/sprig/v3" // This provides most Helm functions
@@ -66,20 +66,24 @@ func showContents(files fs.FS) {
 	}
 }
 
-func loadTemplates() (*template.Template, error) {
+type PolicyTemplates struct {
+	templates *template.Template
+}
+
+func NewPolicyTemplates() (*PolicyTemplates, error) {
 	showContents(templateFS)
 
 	// Parse all templates at once from the embedded FS
 	tmpl := NewTemplate()
 
-	err := loadTemplatesGlob(tmpl)
+	err := loadTemplatesAll(tmpl)
 	if err != nil {
 		return nil, err
 	}
-	return tmpl, err
+	return &PolicyTemplates{templates: tmpl}, err
 }
 
-func loadTemplatesGlob(tmpl *template.Template) error {
+func loadTemplatesAll(tmpl *template.Template) error {
 	return fs.WalkDir(templateFS, ".", func(path string, d os.DirEntry, err error) error {
 		if strings.HasSuffix(path, ".yaml") {
 			data, err := fs.ReadFile(templateFS, path)
@@ -87,8 +91,36 @@ func loadTemplatesGlob(tmpl *template.Template) error {
 				return err
 			}
 			fmt.Fprintf(os.Stderr, "Loading template %s\n", path)
-			tmpl.New(path).Parse(string(data))
+			_, err = tmpl.New(path).Option("missingkey=error").Parse(string(data))
+			if err != nil {
+				return err
+			}
 		}
 		return nil
 	})
 }
+
+func (t *PolicyTemplates) NamespaceTemplates(policyType string, capabilities []string) []*template.Template {
+	res := make([]*template.Template, 0)
+	tmpl := t.templates.Lookup(fmt.Sprintf("templates/%s/namespace/namespace.yaml", policyType))
+	if tmpl != nil {
+		res = append(res, tmpl)
+	}
+	for _, capability := range capabilities {
+		tmpl := t.templates.Lookup(fmt.Sprintf("templates/%s/namespace/%s.yaml", policyType, capability))
+		if tmpl != nil {
+			res = append(res, tmpl)
+		}
+	}
+	return res
+}
+
+func (t *PolicyTemplates) ApplicationTemplate(policyType string) *template.Template {
+	tmpl := t.templates.Lookup(fmt.Sprintf("templates/%s/pod/pod.yaml", policyType))
+	return tmpl
+}
+
+func (t *PolicyTemplates) PredefineApplicationPolicyTemplate(policyType string, predefined string) *template.Template {
+	tmpl := t.templates.Lookup(fmt.Sprintf("templates/pod/%s/%s.yaml", policyType, predefined))
+	return tmpl
+}
diff --git a/cmd/policygen/templates/linkerd/dummy.yaml b/cmd/policygen/templates/linkerd/dummy.yaml
new file mode 100644
index 0000000..e69de29
diff --git a/cmd/policygen/templates/netpol/apiserver/cilium/egress.yaml b/cmd/policygen/templates/netpol/apiserver/cilium/egress.yaml
deleted file mode 100644
index b36c1d1..0000000
--- a/cmd/policygen/templates/netpol/apiserver/cilium/egress.yaml
+++ /dev/null
@@ -1,15 +0,0 @@
-kind: CiliumNetworkPolicy
-apiVersion: cilium.io/v2
-metadata:
-  name: {{.name}}
-  namespace: {{.namespace}}
-spec:
-  endpointSelector:
-    {{ .selector }}
-  egress:
-  - toEntities:
-    - kube-apiserver
-  - toPorts:
-    - ports:
-      - port: "6443"
-        protocol: TCP
diff --git a/cmd/policygen/templates/netpol/egress.yaml b/cmd/policygen/templates/netpol/egress.yaml
deleted file mode 100644
index 793dfd9..0000000
--- a/cmd/policygen/templates/netpol/egress.yaml
+++ /dev/null
@@ -1,14 +0,0 @@
-kind: NetworkPolicy
-apiVersion: networking.k8s.io/v1
-metadata:
-  name: "{{.name}}"
-  namespace: "{{.namespace}}"
-spec:
-  policyTypes:
-  - Egress
-  podSelector:
-    {{.selector}}
-  egress:
-    {{- range $from := .from }}
-    - {{ $from | nindent 4 }}
-    {{- end }}
\ No newline at end of file
diff --git a/cmd/policygen/templates/netpol/ingress.yaml b/cmd/policygen/templates/netpol/ingress.yaml
deleted file mode 100644
index 5cd8b77..0000000
--- a/cmd/policygen/templates/netpol/ingress.yaml
+++ /dev/null
@@ -1,14 +0,0 @@
-kind: NetworkPolicy
-apiVersion: networking.k8s.io/v1
-metadata:
-  name: "{{.name}}"
-  namespace: "{{.namespace}}"
-spec:
-  policyTypes:
-    - Ingress
-  podSelector:
-    {{.selector}}
-  ingress:
-    {{- range $from := .from }}
-    - {{ $from | nindent 4 }}
-    {{- end }}
\ No newline at end of file
diff --git a/cmd/policygen/templates/netpol/namespace/linkerd.yaml b/cmd/policygen/templates/netpol/namespace/linkerd.yaml
new file mode 100644
index 0000000..684665c
--- /dev/null
+++ b/cmd/policygen/templates/netpol/namespace/linkerd.yaml
@@ -0,0 +1,6 @@
+---
+####################################################################################
+# LINKERD NETPOL TBD
+####################################################################################
+
+
diff --git a/cmd/policygen/templates/netpol/namespace/namespace.yaml b/cmd/policygen/templates/netpol/namespace/namespace.yaml
new file mode 100644
index 0000000..2c1e013
--- /dev/null
+++ b/cmd/policygen/templates/netpol/namespace/namespace.yaml
@@ -0,0 +1,14 @@
+
+{{- if not .Open }}
+---
+kind: NetworkPolicy
+apiVersion: networking.k8s.io/v1
+metadata:
+  name: default-allow-nothing
+  namespace: "{{.Name}}"
+spec:
+  podSelector: {}
+  policyTypes:
+    - Ingress
+    - Egress
+{{ end }}
\ No newline at end of file
diff --git a/cmd/policygen/templates/netpol/apiserver/cilium/ingress.yaml b/cmd/policygen/templates/netpol/pod/cilium.yaml
similarity index 53%
rename from cmd/policygen/templates/netpol/apiserver/cilium/ingress.yaml
rename to cmd/policygen/templates/netpol/pod/cilium.yaml
index a81376f..a3c5713 100644
--- a/cmd/policygen/templates/netpol/apiserver/cilium/ingress.yaml
+++ b/cmd/policygen/templates/netpol/pod/cilium.yaml
@@ -3,11 +3,24 @@ apiVersion: cilium.io/v2
 metadata:
   name: {{.name}}
   namespace: {{.namespace}}
+  labels: "{{ .labels | toYaml | nindent 4 }}"
 spec:
   endpointSelector:
     {{ .selector }}
+  {{- if .from }}
   ingress:
   - fromEntities:
     - kube-apiserver
     # See https://github.com/cilium/cilium/issues/35401
     - remote-node
+  {{- end }}
+  {{- if .to }}
+  egress:
+  - toEntities:
+      - kube-apiserver
+  - toPorts:
+      - ports:
+          - port: "6443"
+            protocol: TCP
+  {{- end }}
+
diff --git a/cmd/policygen/templates/netpol/pod/pod.yaml b/cmd/policygen/templates/netpol/pod/pod.yaml
new file mode 100644
index 0000000..c606036
--- /dev/null
+++ b/cmd/policygen/templates/netpol/pod/pod.yaml
@@ -0,0 +1,56 @@
+---
+{{- define "peer" }}
+      - podSelector:
+          matchLabels: {{ .MatchLabels | toYaml | nindent 12 }}
+        namespaceSelector:
+          matchLabels:
+            kubernetes.io/metadata.name: {{ .Namespace }}
+        {{- if .Ports }}
+        ports:
+          # TODO: add protocol
+          {{- range $port := .Ports }}
+          - port: {{ $port }}
+          {{- end }}
+        {{- end }}
+{{- end }}
+-
+  {{- define "ports" }}
+    {{- range $port := . }}
+    PORT {{ $port }}
+    {{- end }}
+  {{- end }}
+
+
+kind: NetworkPolicy
+apiVersion: networking.k8s.io/v1
+metadata:
+  name: "{{.app.Name}}"
+  namespace: "{{.app.Namespace}}"
+  labels: {{ .labels | toYaml | nindent 4 }}
+spec:
+  podSelector: {{ .app.MatchLabels | toYaml | nindent 4 }}
+  policyTypes:
+    {{- if or .ingress.Applications .ingress.Networks }}
+    - Ingress
+    {{- end }}
+    {{- if or .egress.Applications .egress.Networks }}
+    - Egress
+    {{- end }}
+
+  {{- if or .ingress.Applications .ingress.Networks }}
+  ingress:
+    from:
+      {{- range $ingress := .ingress.Applications }}
+        {{- template "peer" $ingress }}
+        {{- template "ports" $ingress.Ports }}
+      {{- end }}
+      {{- range $ingress := .ingress.Networks }}
+      - ipBlock:
+          cidr: {{ $ingress.CIDR}}
+          except:
+          {{- range $except := $ingress.Except }}
+          - {{ $except }}
+          {{- end }}
+      {{- end }}
+  {{- end }}
+    THEEND
\ No newline at end of file
diff --git a/example/config.yaml b/example/config.yaml
index 246e0eb..a5cc0a6 100644
--- a/example/config.yaml
+++ b/example/config.yaml
@@ -12,6 +12,7 @@ networks:
 
 namespaces:
   - name: wamblee-org
+    open: true
     capabilities:
       - linkerd
     applications:
@@ -29,22 +30,24 @@ namespaces:
       - name: httpd-wamblee-org
         matchLabels:
           app: wamblee-org
+        ports:
+         - 1000
 
 communications:
   - from: # can we support both string and list of strings?
       - httpd-wamblee-org
+      - internet
     to:
       - nexus-server
-      - wamblee-static
-      - wamblee-safe
-
-  # or limiting ports further
-  - from:
-      - httpd-wamblee-org
-    to:
-      - nexus-server
-    ports:
-      - 8081
-      - 8082
+
+
+#  # or limiting ports further
+#  - from:
+#      - httpd-wamblee-org
+#    to:
+#      - nexus-server
+#    ports:
+#      - 8081
+#      - 8082