Most European countries have an obligatory unemployment insurance and you get roughly 70-80% of the average of your last 6 months for a while (most common case) for a while.
By exemple, in Switzerland, you get about 70% (80% if you have kids) of your old salary for a maximum length of 18 months during which you are supposed to find a new job. However, it is generally frowned upon to stay unemployed for more than 6 months, except in a case like the crisis we are facing. That unemployment salary cannot exceed about 10k a month though and you cannot travel out of the country without permission form the government
So yeah, depending on how you were living, it's pretty much paid holidays. Almost noone here tries to find a job within the next 3 months of being sacked, they actually enjoy the break most of time. People I know usually go back to sport or play MMOs during that time.
Aside from a couple of big international companies, I can't say we have been feeling the pain as much as the rest of the world...for now.