In XCOM Enemy Unknown, Panic will cause allies of the Council of Nations to potentially flee the council and seek help elsewhere if not dealt with. Each country has its own Panic Level, and you'll have to do your best to keep it in check or risk losing all of XCOM's allies.
Causing Panic[edit]
Several in-game events cause panic, including alien invasions, abductions, and more. If a continent is completely lacking in protective Satellites, it will cause the countries within to accumulate Panic more quickly. You will also occasionally have the choice to take a mission in one of several locales. Those that you ignore in these scenarios will automatically take on a higher Panic Level.
Reducing Panic[edit]
The easiest way to reduce Panic in an area is to assign a Satellite to watch over the country. This will reassure residents of the country that you have their backs should things go awry for them. You can also reduce Panic in an area by choosing to take on a mission in that area over others.
Balancing Panic[edit]
The best strategy to use when balancing Panic is to constantly move your Satellites around. Keep Satellites over countries with high Panic Levels until their Panic subsides to a more reasonable one or two bars. While the Satellites are live in these areas, take on missions in other areas, thus balancing the distribution of Panic worldwide. A great XCOM player will be able to keep everyone in the world just a little panicked.
Also note that covering an entire continent in Satellites will make their countries' Panic Levels decrease faster than they otherwise would. Use this to your advantage when you are in a rush to decrease the Panic Level of a few countries in the same continent.
