ABSTRACT

This chapter explores why some countries performed better than others in managing the crisis, during the initial phase of it, which was probably the worst. It elaborates on this question using the crisis management index (CMI), taking into consideration gross domestic product (GDP) and labour market performance among European Union member states. The chapter argues that countries that performed relatively better during the economic crisis of 2007–11 are those that do not have a strong flexible labour market and managed to keep stable employment levels. These countries are Germany, Austria, Poland, Belgium, the Netherlands, Malta and Luxembourg. Following the various performances of the EU economies, one can state that EU labour markets were differently affected by the crisis. In regard to the Mediterranean countries, the economic crisis is commonly deepened by structural problems such as low productivity, scarce innovation, exposure to the housing sector – badly affected by the crisis – and higher level of public debt.