Unless Europe takes action soon, its further economic and political decline is almost inevitable, writes Alberto Alesina, author, jointly with Professor Giavazzi, in the provocative book The Future of Europe. Without a comprehensive reform, overprotected and overregulated economies Western Europe economies will continue to slowdown and its political influence will become negligible. This does not mean that prosperous European countries will become poor. Their living standards will remain comfortable. Nevertheless, they will loose power in a world context. In this forum, professor Alesina outlines the steps that Europe must follow to prevent its economic and political eclipse.
Europe, the authors say, has much to learn from the US market liberalism. Workers in Europe work less and have more vacations than US workers; they mostly value job stability and security. On the contrary, workers in the US work harder and longer and are more willing to endure the booms and slumps of the economy. European citizens are proud of their welfare states; US citizens hate government expenditures. The US is a melting pot; Europe has some difficulties in absorbing immigrants. If Europe wants to avoid a decline, it should get closer to the US free-market model.
Alesina points out how Europe should handle labour productivity, labor market regulation, globalization, support for higher education and research, fiscal policy, and its multiethnic societies. But their wake-up call will ring loud and clear for anyone concerned about the future of Europe and the global economy.
Speakers: - Prof. Alberto Alesina, Professor of Political Economy, Harvard University. - Molt honorable Sr. Jordi Pujol, Former President, Generalitat de Catalunya.
Chair: Prof. Xavier Vives, Academic Director, Public - Private Sector Research Center of IESE Business School.
The Public-Private Sector Research Center was created in October of 2001. Its mission is to foster cooperation between the private sector and public administrations, as well as the exchange of ideas and initiatives, through dialogue, research and education.
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