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Social reforms had an important position in the process of transition changes in Serbia in the previous decade. Their strategic framework and aims have been defined in the first years after the 'democratic changes' of 2000 and their realization followed by a series of problems. The transition from the 'socialist welfare state' to the concept of 'active social policy' has been in compliance with the accepted model of (liberal) reforms and changes in the institutional sphere. Analysis of effects and achievements have pointed to an inadeaqucy of the accepted model and deficiencies in the practice. From the point of view of the current situation and expected changes in the future, there is an obvious need for a comprehensive evaluation of cause of (un)success of social reforms. The reason for that lies in the elimination of insufficiencies and creation of a basis for the construction of a system in compliance with the national objectives, the European standards and global challenges.

EU programme documents designed to influence the social policies of the member states are filled with concepts of social exclusion and social inclusion. This paper aims to clarify these concepts as they are employed in academic and public policy discourse and to discuss the societal function of this discourse and the impact of the European agenda of social inclusion. The authors show that although concepts of social exclusion and social inclusion are far from straightforward in meaning, their influence on public policy discourse and agenda is evident. The reason is that they redirect social policy towards a multidimensional approach, towards balancing rights and obligations, and towards more complex but also local and individualised policies, though the corresponding discourse bears the normative features of a social 'vision'. The EU's social policy agenda exhibits aspirations towards and some potential for achieving real policy change. On the other hand, there are reservations about its true impact. In this respect, the specifi c societal and political context of its implementation plays a crucial role.