This chapter offers an overview of literacy development in Europe. The European Union is a political and economic union of twenty-seven Member States. Its members are industrialized nations that value inclusion and allow free movement of its citizens within the union. Good skills in reading, mathematics, and science are viewed as a prerequisite for integration in the knowledge society, but challenges remain. The chapter starts out by presenting evidence related to the spread of literacy in Europe and discusses current notions about the relationship between schooling and literacy abilities and about the role of skills for full integration in society. Furthermore, evidence is provided on the variation in reading development in different orthographies and its relationship with home and school factors. In particular, current literacy achievement levels in primary and secondary school are related to home-background factors. Finally, the chapter discusses how comparative reports on literacy development in European Member States can contribute to our understanding of reading development in Europe and inform policy decisions.