The European Union has determined that it will overcome poverty and make significant progress in eradication poverty as early as 2000. In 2010, heads of state and government pledged to reduce poverty and social exclusion for at least 20 million people. Overall data on the percent age of people at risk of income poverty (16.9%) in 2012 are not much different from those of 2005 (16.4%), but in the context of a decline in household incomes, it is possible that the reality of rising income poverty concealed. The indicator of risk of poverty or social exclusion has not varied too much since 2008 (23.7%), but the crisis seems to have stopped the previous trend of slow continuous decline. It is important to note that, since the beginning of the crisis, differences between the different parts of the EU have grown, with a new division emerging between southern and eastern European countries where the social situation is deteriorating significantly than in the western and northern countries. Countries with strong social systems show better resilience. EU-wide austerity policies have accelerated this deterioration by limiting wages and benefits and cuts in service delivery. Whether it will effectively tackle poverty and social exclusion in the next few years will depend significantly on the capacity of the European Union and the Member States to understand the negative impacts of rough austerity policies and a balanced approach to crisis recovery that will preserve human capital, human dignity and the European social model .