This report assesses the impact of the crisis on the subjective well-being of Europeans. In 2011, GDP per capita in 22 out of the then 27 EU Member States was below 2008 levels, and unemployment rates were higher in 25 out of the 27. These indicators demonstrate worrying trends, but the report goes deeper, trying to answer various questions: What is the real impact on people’s lives? Who has been hit hardest? Where have there been positive wellbeing patterns? What explains the variation in well-being across Europe? How can policy increase or stem the fall in well-being in the future? It concludes that the crisis may not be affecting everyone’s well-being equally, nor all aspects of well-being. Well-being has fallen in many EU countries, remaining highest in northern countries. However, falls in wellbeing in many western EU countries have been matched by increases in eastern countries. Population groups with low well-being include those limited by disability or illness and unemployed people.