Large-scale initiatives to improve individual life chances and social structures face many problems. They need proper theorising and equally proper operationalisation. This is where the EFSQ project on ‘Social Quality Indicators’ comes into play: its main objective was to develop concepts and instruments for a country- and European-wide assessment of social quality. On the basis of ontological considerations about ‘the social’, the new approach defined a ‘quadrangle’ of four basic conditions which were assumed to determine the development of social quality: ‘socio-economic security’, ‘social inclusion’, ‘social cohesion’ and ‘social empowerment’. Relevant domains and sub-domains for each of the four components were identified and a restricted set of ‘ideal’ – mostly objective – indicators was chosen. The availability of already existing ‘hard’ data did not influence that process. Hence the project has stretched beyond the mere description of social quality in Europe and provided a stimulus to gather new relevant data on ‘forgotten’ aspects of the social quality of life. Social indicator research has a long tradition in Germany which helped us to draw effectively upon the results of regularly conducted surveys. The following report starts by explaining the German context. It then summarises key-findings from existing databases to give meaning to the ninety-five social quality indicators in the four components. Finally, we have included discussion of relevant policy initiatives.