Summary form only given. ASML continues to pursue a phased R&D program leading to insertion of EUV lithography tools at the 50 nm node. ASML have addressed technical issues through risk reduction efforts in key subsystem areas including source, optics, contamination control and vacuum stages. In the next phase, which started early 2000, ASML is designing and realizing an alpha tool. This high NA, full field scanner will demonstrate solutions to all high risk areas by end of 2003. This alpha tool is part of a recent EUV program in Europe executed within the MEDEA+ framework with parallel project on source, mask and process. The paper will discuss why EUV is the preferred next generation lithography. The key elements being investigated by the alpha tool project and recent progress are shared. Finally it will be explained how the alpha tool program fits into the overall ASML EUV program which will lead to the insertion of high throughput production tools with aggressive specifications for CD control, overlay and cost of ownership.