This report reviews trends and developments in the relationship between workers, employers, their respective representatives and public authorities at national and EU level during 2010-12. It looks at how the continuing crisis and reforms implemented in response may be having a more fundamental impact on industrial relations, as conflict is increasing. In certain countries, fiscal consolidation has resulted in unfavourable settings for social dialogue, especially in the public sector, where reforms have been accelerated. Despite this the report concludes that structured social dialogue is still the right approach for building consensus and ensuring the sustainability of economic and social reforms.