Within the frame of the European Geoid Project of the International Association of Geodesy (IAG) a significantly improved geoid/quasigeoid model for Europe and surrounding areas was computed at the Institut fur Erdmessung (IfE). For the new solution high resolution gravity and terrain data were combined with a global geopotential model in an optimal manner. The relative accuracy of the new model EGG96 is estimated to be in the range of ±1...5 cm over 10 to a few 100 km distance and ±5...20 cm over a few 1000 km distance, respectively, being confirmed by comparisons with independent GPS/leveling data and altimetric data.