The EUR-ACE Socrates-Tempus project (September 2004/March 2006) proposed a decentralized European system for accreditation of engineering programmes in the "Bologna process" area (European Higher Education Area) at the First and Second Cycle (FC and SC) level (but including "Integrated Programmes", i.e. programmes leading directly to a SC degree). In this system, "national" engineering accreditation agencies would continue to award their accreditation certificates and give them an added European value by the EUR-ACE quality label, recognized by all participating agencies: this rather novel way of international accreditation will create a consistent accreditation system of engineering education at the continental scale. A non-profit Association (ENAEE) has been established for support and supervision of the EUR-ACE system, and is now working, thanks also to two new EC-supported projects, in order to make the EUR-ACE proposals operational and award the EUR-ACE labels. The background, present status and perspectives of the EUR-ACE system is presented in detail in this paper.