The purpose of the model is to proovide a framework for evaluating different policies, particularly those aimed at acheiving sustainable energy use over the long term. A main task of the model is the evaluation of policies reducing anthropogenic emmissions of greenhouse gasses in Europe by 10 to 20% over the period until 2010. The appraoch to model development can be described in two phases. Phase 1 concerns the updating of the existing data, reestimating the economic relationships, making assumptions for exogenous vaviables, and finally producing a baseline forecast for 2010. Phase 2 aimsto both widen and deepen the model. Widening will be acheived by incorporation the modelling of east-west Germany, north/south Italy and Greece, and to exend the model to include new member states (ie Austria, Finland and Sweden) plus Norway and Switzerland. Alongside the completion and widening, extra work is to be done in refining the absic sets of equations, with a more satisfactory coverage of fiscal, monetary and institutional relationaships. Development work is also planned for the model's energy-environment linkages.