Poverty rates in European countries have increased during recent decades and are particularly high in East European countries. Young children are especially vulnerable to poverty. Poverty in early childhood can have irreversible negative consequences for cognitive, social and emotional development, academic achievement and behavioural adjustment. High quality early childhood education and care (ECEC) is one of the most effective means to break the cycle of poverty, but there are still many challenges. The coverage of ECEC in Europe is currently insufficient and varies widely between countries. Moreover the quality of ECEC needs to be raised and curricula should be adapted to meet the needs and cultural perspectives of communities living in poverty and enhance the inclusiveness of ECEC. Furthermore, ECEC needs to be combined with family support and support for bilingual development.