Meteosat Second Generation (MSG) is the new generation of European geostationary meteorological satellites MSG (Meteosat Second Generation). It has capabilities greatly enhanced over the current Meteosat series. The twelve channel imager, called SEVIRI (Spinning Enhanced Visible and Infrared Imager), observes the full disk of the Earth with an unprecedented repeat cycle of 15 minutes. Pixels are sampled with a distance of 3 km and the high resolution visible (HRV) channel even has 1 km sampling distance. The spectral channels, at 3.9, 6.2, 7.3, 8.7, 9.7, 10.8 ,12.0 and 13.4 µm and at 0.6, 0.8 and 1.6 µm, draw on experience from existing satellites, thus providing continuity of services and facilitating the development of novel operational applications. Thermal IR channels have an onboard calibration and for the solar channels an operational vicarious procedure is developed aiming at an accuracy of 5%. The core operational meteorological products are derived by the Meteorological Product Extraction Facility (MPEF) at EUMETSAT in Darmstadt. Other products will be derived in Satellite Application Facilities (SAF), a decentralised part of the Applications Ground Segment. As additional scientific payload MSG carries a Geostationary Earth Radiation Budget (GERB) instrument. The MSG system is established under a cooperation between ESA and EUMETSAT MSG Programme covers a series of three identical satellites, which will provide observations and services over at least 12 years. The first launch of MSG is scheduled for 2002. The paper describes satellite characteristics and applications, emphasising the novel aspects of MSG. For the first time full disk imagery will be operationally available at time intervals of 15 minutes. Recent studies, also those in preparation for MSG, have shown that this has great potential to improve wind products mainly used for global Numerical Weather Prediction (NWP). The repeat cycle also provides unprecedented multi-spectral observations of rapidly changing phenomena (e.g. deep convection) and provides novel insight into rapid changes in cloud microphysics. Initial studies also revealed the potential for monitoring atmospheric instability and determine areas prone to convection. Special care has been given to characterising the SEVIRI instrument before launch. It is shown how important instrument characterisation is in order to obtain accurate radiances. The paper also provides an overview of novel quantitative applications including i) long-range water vapour and aerosol transports, ii) detailed observations of fast components of the hydrological cycle and iii) applications over land. The paper concludes with an outlook on the future EUMETSAT Polar System (EPS) and the relevant science for product derivation.