In work package 3, ImPRovE researchers from AUEB and ISER will analyse the impact on poverty and inequality of the crisis and the austerity measures taken since 2007. More in particular, they will extend the available policy scenarios in the European tax-benefit microsimulation model EUROMOD to investigate the social impact of the crisis and austerity measures for at least 7 countries that have been severely hit by the crisis. The countries under study include the Southern European countries Greece, Italy, Spain and Portugal, two Baltic countries (Latvia and Lithuania) as well as Romania. By now, factors for uprating various income components to the 2012 situation are available for most EUROMOD countries. The final results of this work package will be available before Spring 2014.