Europe grew rapidly for many years, but now, faced with greater challenges, several of the large economies in Europe have either failed to generate enough jobs or have failed to achieve the highest levels of productivity or both. This study explores why Europe's growth slowed, what contribution information technology makes to growth, and what policies could facilitate economic transformation. It emphasizes a system with strong work incentives and a high level of competitive intensity. Europe doesn't need to eliminate its protections for individuals, the authors conclude, but both social programs and policies toward business must be reoriented so that they encourage economic change.
. . . a timely contribution to a debate that deserves the closest attention: how to get faster economic growth so the essence of Europe's social model can be preserved against a background of a rapidly changing world. . . . I warmly recommend it.
Romano Prodi, President of the European commission
Baily and Kirkegaard have written an outstanding work on an enormously important issue in economic policy.
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