The purpose of this paper is to grasp the characteristics of urban policy of the EU in a case of Nordstadt in Dortmund, Germany, based on fieldwork of the present author conducted occasionally between 2006 and 2008. Social exclusion has been severe in this district, which was adopted as one of targets of URBAN II program of the EU in 2001. There were three pillars of URBAN II in Nordstadt: improvement of quality of the urban space, promotion of the local economy, and empowerment of the local people. These three should be integrated with each other under the supervision of a special team, Project Group URBAN II, within the city administration. Several departments dispatched personnel to this team, and the department of city planning played a role of leader of the team. According to the budget, promotion of the local economy was most important among the three pillars. But the quarter management (QM) or neighborhood management, which was allocated to one of projects of the third pillar, was most successful among more than thirty projects carried out in the framework of URBAN II. QM played a role of coordinator of almost all the projects, especially for the first and the third pillars. One of its tasks is to present the vision of its own quarter. And it contributed to empowerment of the local people. There were three QMs in Nordstadt. Despite the possibility of applications from all over Europe, the city government encouraged local NPOs to apply for it, and selected a consortium of local NPOs as a carrier of each QM. These NPOs are to be classified into three types: social welfare organizations either of Christian or of trade-union tradition, and alternative-movement association originated from the 1980s. All the NPOs had worked for the local public welfare long before the launch of URBAN II. The executed projects were evaluated every one or two years. The city council examined the performance of the QMs and decided the continuation of the QMs every two or three years. The system of competition was introduced in almost all the projects. There were also projects which did not start until 2005. It means flexibility of URBAN II. But it is necessary to tackle with social exclusion in a long-term perspective. It is not sure if the neo liberal system of the concrete practices in URBAN II can lead to the resolution or at least the relaxation of social exclusion.