The study aims to review the environment shaping public expenditures in general and social expenditures in particular in the new member-states (NMS) of the European Union (EU-10) as compared with the older members (EU-15). The study consists of two distinct, but interrelated parts. The first covers certain general trends characterising social expenditures in the EU-10 in comparison with the EU-15: it discusses factors affecting recent developments in these expenditures, their comparative size, as well as statistical problems related to the international comparison of these items. The second part addresses specific issues concerning social expenditures and other aspects of public policy that may directly or indirectly affect children.The motivation of the study is to provide background information based on experiences of EU-countries and indicate the kinds of problems/challenges that candidate (and other prospective member-) countries of the EU may have to face in the area of managing social – especially children-related – public expenditures.