Why did some countries perform better than others during the current crisis? 1

This chapter aims to explore why some countries perform better than others in managing the current economic crisis. The author elaborates on this question using the Crisis Management Index, which takes into consideration GDP and labour market performance among EU member states. The chapter concludes that countries which performed better during the economic crisis of 2007–11 are countries which do not have a flexible labour market and have managed to keep stable employment levels. These countries combine a very good mix of economic policies and social institutions oriented to stabilize the level of consumption and the aggregate demand. Coordination mechanisms and higher levels of financial regulation and monitoring are also important features of these economies. Clearly, this group of countries, the author argues, identifies better, in the EU, a coordinated market economy model.