Abstract EU is strongly preparing ITER construction involving the system of EU Associations, universities and industry. The European programme has been steered to be in line with the present conception of a future power reactor. Thirty percent of the fusion research budget has been spent on long-term related activities managed by EFDA. These include Power Plant Conceptual Studies (PPCS), the recently undertaken DEMO Conceptual Studies, design and R&D for breeder blankets, low activation materials and IFMIF. Developments on fuel cycle, neutronics, safety and socio-economics complement those specifically performed for ITER. Two EU helium-cooled DEMO blankets will be tested in ITER, using liquid lithium-lead and solid ceramics as breeders. The blanket structures will use EUROFER. Irradiations to 70–80 dpa will qualify EUROFER for DEMO. Advanced materials, in particular SiCf/SiC, under development, could provide more thermodynamically efficient blankets. Even with a fully successful ITER, a number of issues will remain open in technology. The application of high temperature superconductors, essential progress in materials, blanket design and remote handling, are required to produce environmentally safe and economically competitive fusion. A fully integrated world wide international programme is the best way to efficiently progress in these fields.