The informal, or shadow, economy is growing in the European Union (EU) due to the economic crisis. It ranges from eight per cent of Gross Domestic Product (GDP) in Switzerland and Austria to more than 30 per cent in some Central and Eastern European countries, such as Bulgaria, Croatia or Romania. Curtailing this “other” marketplace is a challenge for both state governments and the EU, as the transformation of undeclared work into formal work can be an important step towards the fulfilment of the EU employment targets set out in the Commission strategy “Europe 2020”.