We perform a combined analysis of the unitarity triangle and of the CP-viol
ating parameter epsilon'/epsilon using tho most recent determination of the
relevant experimental data and, whenever possible, hadronic matrix element
s from lattice QCD. We discuss the role of the main non-per turbative param
eters and make a comparison with other recent analyses. We use lattice resu
lts for the matrix clement of Q(8) obtained without reference to the strang
e quark mass. Since a reliable lattice determination or the matrix element
of Q(6) is still missing, the theoretical predictions for epsilon'/epsilon
suffer from large uncertainties. By evaluating this matrix clement with the
vacuum-saturation approximation, we typically find as central value epsilo
n'/epsilon = (4-7) X 10(-4). We conclude that the experimental data suggest
large deviation of the value of the matrix element of Q(6) from the vacuum
-saturation approximation, possibly due to penguin contractions. (C) 2000 E
lsevier Science B.V. All rights reserved.