In this report, we summarise the literature with regard to the effects of ECEC on maternal employment and child development, the two outcomes that are most often cited to justify investments in ECEC. Next, we present the costs and funding of ECEC and show that ECEC services are provided through a variety of mechanisms across European countries. We discuss the effects of these funding systems in terms of costs, quality and inclusiveness. Comparing the advantages and disadvantages of private and public systems along these dimensions can inform policymakers in searching to improve their systems. Our own further research on efficiency, costs and benefits, and inclusiveness will also build on this framework. (author abstract)