Significant progress has been made on ASDEX Upgrade during the last two years in the basic understanding of transport, in the extension of the improved H-mode in parameter space and towards an integrated operating scenario and in the development of control methods for major performance limiting instabilities. The important features were the understanding of particle transport and the control of impurity accumulation based on it, the satisfactory operation with predominantly tungsten-clad walls, the improved H-mode operation over density ranges and for temperature ratios covering (non-simultaneously) the ITER requirements on ν*, n/nGW and Te/Ti, the ELM frequency control by pellet injection and the optimization of NTM suppression by DC-ECCD through variation of the launching angle. From these experiments an integrated scenario has emerged which extrapolates to a 50% improvement in n T τ or a 30% reduction of the required current when compared with the ITER base-line assumptions, with moderately peaked electron and controllable high-Z density profiles.