  We present a detailed analysis of epsilon'/epsilon within the Standard Model,
taking into account the strong enhancement through final-state interactions
identified in refs. [1] and [2]. The relevant hadronic matrix elements are
fixed at leading order in the 1/N_C expansion, through a matching procedure
between the effective short-distance Lagrangian and its corresponding
low-energy description in Chiral Perturbation Theory. All large logarithms are
summed up, both at short and long distances. Two different numerical analyses
are performed, using either the experimental or the theoretical value for
epsilon, with compatible results. We obtain Re(epsilon'/epsilon) = (1.7 +-
0.9)*10^{-3}. The error is dominated by the uncertainty in the value of the
strange quark mass and the estimated corrections from unknown 1/N_C-suppressed
local contributions. A better estimate of the strange quark mass would reduce
the uncertainty to about 30%. The Standard Model prediction agrees with the
present experimental world average Re(epsilon'/epsilon) =(1.93 +-
0.24)*10^{-3}.
