1996 was a y ear of both gridlock and reform for the European Union. The EU experienced one of its major institutional crises with the Mad Cow Disease. It was equally confronted with only minor progress in the ongoing Intergovernmental Conference for institutional reform as no major breakthroughs could be expected before the UK elections of May 1997. However, some major achievements occured as well. The adoption of the Stability Pact at the Dublin Summit in December increased the credibility of the EMU-project seriously. At the same time, the EU intensified its efforts to improve its trade relations with different parts of the world, especially South and South-East-Asia. At the same time however, the Commission bas been confronted with increasing disputes on the way in which it uses its prerogatives in competition policy and the enforcement of implementation.