Such social protection expenditure remained high in the first years of the crisis of 2007–2009, acting as a useful cushion to minimize the social costs of the crisis. At the same time, a number of countries successfully used ESM tools, such as shorter working time schemes and social dialogue to negotiate alternatives to massive layoffs during the downturn. By contrast, countries without such mechanisms could not avoid immediate layoffs and high unemployment growth. Paradoxically, despite this resilience of social policy in the first part of the crisis, most European countries when confronted by public debts – in large part due to their support of indebted banks – in the second phase of the crisis have implemented austerity policies that involved significant cuts in public expenditure and social welfare, although it is recognised that social policy was not among the causes of the crisis. This volume shows that beyond the diversity and different magnitudes of the changes by country – the European Social Model being resilient in some while others have opted for its dismantling – these changes nevertheless have been considerable and have affected all the main pillars and elements of the European Social Model (see Table 1.3 at the end of this chapter). Not only were quantitative adjustments made – particularly in the public sector – but also more structural changes were carried out, concerning for instance access to unemployment benefits, pensions, social assistance, labour market measures, public services and social dialogue. The changes were most radical in the most indebted countries of the euro zone; the strategy to exit the crisis advised by the Troika called for a cut in all expenditure to reduce deficits and lower unit labour costs – generally to be achieved through wage cuts and dismantling of collective bargaining – to improve individual countries’ competitiveness
