The Nordic-Baltic region has become highly integrated. The Nordic countries have been successful in balancing competitiveness and growth with social inclusiveness while the Baltic States have grown economically but remain vulnerable with weaker social systems and more unequal income distribution. Prof. Hilmarsson will discuss the crisis response in 2008-09 and post crisis results in the Nordic and Baltic countries, exploring the influence of Nordic-Baltic financial sector linkages on economic and social outcomes in the Baltic States. 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 European Union.