This panel deals with the reformulation of human capital formation policies in Spain and Italy during the crisis period. Skills formation constitues one of the crucial issues for political economies to adapt to the challenges posed by the post-industrial era, especially if we are dealing with countries that are part of the Eurozone. The panel assesses both the reform of VET systems in the two cases under study and innovative moves such as the incorporation of the Youth Guarantee. Further, the issue of occupational over-qualification is considered.