In this article we would like to introduce a three-year Research Project called 'New Local Policies against Social Exclusion in European Cities', financed by the Targeted Socio-Economic Research Program (TSER) of the European Union. We will briefly highlight the entire research project that aims to make a contribution to European debate about social exclusion within social work (see also Washington and Paylor 1998), as well as social work's theoretical knowledge and field projects. The specific emphasis is on analysing the significance of the eco-social environment and citizen participation in disadvantaged residential areas, but related work aims to develop new kinds of action models and research methods. The project started in January 1998 in Finland, Germany, and Great Britain, and it will be completed by the end of 2000. Our research is a unique kind of cross-national comparative case-context research, based on classic ideas of action research and comparative research. Overall, the project aims through a European exchange to develop innovative models of local policies, particularly within community-based social work.