Denmark, Finland, Norway, and Sweden, "the Nordic-4" have been successful in balancing competitiveness and growth with social inclusiveness while the Baltic States have grown economically but remain vulnerable with weak social systems and very unequal income distribution. EU membership and inter-linkages with the Scandinavian banking systems appears to have affected the crisis response of the Baltic States in maintaining fixed exchange rate and implementing austerity programs partially to help rescue Nordic banks in the Baltic States. In spite of their strengths, including their social systems, the Nordic-4 are faced with a challenging mix of large, cross-border banks and highly indebted households at a time of weak global growth. Important lessons can be learned by comparing the crisis response of these various small states that are at different income levels, have different welfare and tax systems, and are seeking different levels of integration with the EU. The book will discuss the crisis response and post crisis results in the Nordic and Baltic countries in terms of both economic performance (e.g. GDP and unemployment) and social progress (e.g. risk of poverty, social exclusion, income distribution). It analyzes and assesses how the Nordic-Baltic financial linkages affected crisis response in the Nordic and the Baltic States in 2008. Adding to the literature on the EU, regional integration generally and on small states, it delves into the benefits and disadvantages of economic integration including banking linkages, trade and investment flows.