Future of Europe

Unless Europe takes action soon, its further economic and political decline is almost inevitable, economists Alberto Alesina and Francesco Giavazzi write in this provocative book. Without comprehensive reform, continental Western Europe's overprotected, overregulated economies will continue to slow--and its political influence will become negligible. This doesn't mean that Italy, Germany, France, and other now-prosperous countries will become poor; their standard of living will remain comfortable. But they will become largely irrelevant on the world scene. In The Future of Europe, Alesina and Giavazzi (themselves Europeans) outline the steps that Europe must take to prevent its economic and political eclipse. Europe, the authors say, has much to learn from the market liberalism of America. Europeans work less and vacation more than Americans; they value job stability and security above all. Americans, Alesina and Giavazzi argue, work harder and longer and are more willing to endure the ups and downs of a market economy. Europeans prize their welfare states; Americans abhor government spending. America is a melting pot; European countries--witness the November 2005 unrest in France--have trouble absorbing their immigrant populations. If Europe is to arrest its decline, Alesina and Giavazzi warn, it needs to adopt something closer to the American free-market model for dealing with these issues. Alesina and Giavazzi's prescriptions for how Europe should handle worker productivity, labor market regulation, globalization, support for higher education and technology research, fiscal policy, and its multiethnic societies are sure to stir controversy, as will their eye-opening view of the European Union and the euro. But their wake-up call will ring loud and clear for anyone concerned about the future of Europe and the global economy. Alberto Alesina is Nathaniel Ropes Professor of Political Economics at Harvard University. He is the coauthor (with Enrico Spolaore) of The Size of Nations (MIT Press, 2003). Francesco Giavazzi is Professor of Economics at Bocconi University and Visiting Professor at MIT. He is the coauthor (with Alberto Giovannini) of Limiting Exchange Rate Flexibility: The European Monetary System (MIT Press, 1989)."Few scholars are better qualified to analyze the economic condition of Europe than Alesina and Giavazzi. With admirable clarity, supporting each step of their argument with some striking empirical findings, they reveal the seriousness of the plight of the major continental European economies--and the urgency of the need for liberalizing reforms." --Niall Ferguson, Laurence A. Tisch Professor of History, Harvard University, author of Empire and Colossus "There is no shortage of scathing descriptions of what's going wrong in Europe, especially in its three largest countries (France, Germany, and Italy). But this book is different. Based on serious research undertaken by the authors over many years, its assessment is sure-footed, often unconventional, and always refreshing. It not only explains what's wrong but also offers practical solutions that leave no stone unturned. Very accessibly written, this provocative book deserves to be widely read, especially for the well-informed debates it will trigger." --Charles Wyplosz, Professor of Economics, Graduate Institute of International Studies, Geneva "The authors have written an accessible plea for Europeans to reform their economies along American lines. They have converted a great deal of technical thinking and evidence into a lively book that noneconomists can easily digest." --Charles Tilly, Joseph L. Buttenwieser Professor of Social Science, Columbia University View All Endorsements