In most European countries several reform indicators point to a marked change in psychiatric care during the last three decades. Almost everywhere the size of psychiatric hospitals was reduced and the number of beds decreased. The development in the outpatient and complementary sector is less clear. Different European countries provide sheltered living accomodations, workshops and outpatient treatment to varying degrees. Comparably complex are financing and legal grounds of psychiatric treatment. Beside still existing institutional deficits, the negative attitude of the public toward mentally ill and psychiatric care is a serious obstacle for further implementation of community based psychiatric care.