Can high labour costs and/or labour market rigidity be held responsible for high unemployment in Europe? Do higher tax burdens imply lower level of competitiveness? If this is so, then each individual government is accountable, since high taxes and social security contributions are usually considered as the main culprit for lower employment and, thus, lower (labour force) competitiveness. Still, when assessing government influence (‘bites'') via taxes, as well as labour market indicators, the situation in Europe differs extremely from one country to another. This book, therefore, investigates the relationship between government ‘tax bites'' and labour market performances in a sample of 32 European countries. In fact, it divides Europe into groups with respect to tax burdens and labour market indicators. Furthermore, this book illustrates how governments changed their taxing systems in the recent crisis in order to influence labour market outcomes. According to its content and style, the book is addressed to a wider audience, with main intent towards the academic community, including students. It could also be useful to different policy makers, both at EU and individual country level.