Designing the European Model

HONKAPOHJA Seppo , WESTERMANN Frank

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Summary

While the European Union has been hailed as a major political success in the last five decades, it continues to face numerous economic and social concerns. With enlargements and changing international environments the Union is confronted with new challenges. Problems have arisen from new global economic developments, such as outsourcing of productive activities and the international macroeconomic imbalances. These issues include unemployment problems, slow growth performance of many EU countries, the formulation of appropriate macroeconomic policies, policies towards enlargement of the Union to institutional design and structural policies for the EU. The fourteen articles in this book are divided into three parts. The first part is devoted to labour market issues covering reforms from welfare systems to pay-setting and longer working hours. The second part considers European macroeconomic issues including the fiscal policy framework for the EU, growth performance of EU-15 economies and global imbalances and their effects on Europe. The third part of the book is focused at institutional issues, including the subsidiary principle, European education systems, coming problems in European pension systems, and the functioning of the financial system and competition policy in Europe. Written jointly by a group of well-known independent economic experts, this book offers an in-depth economic analysis that aims to discuss and suggest effective solutions to current concerns in European policy.

Table of contents

Introduction PART I: LABOUR MARKETS Welfare to Work Labour Market Reform in Europe Pay-Setting Systems in Europe Outsourcing Longer Working Hours PART II: MACROECONOMIC ISSUES Fiscal Policy and Macroeconomic Stabilization in the Euro Area The Road to the Euro Convergence and Divergence in Economic Growth in the EU Global Imbalances PART III: INSTITUTIONS Rethinking Subsidiarity in the EU Financial Architecture Pensions and Children Education Systems in the EU Competition Policy