How Europe can get back to work

Beyond the shadow of a doubt, the reform of labor markets is ultimately the most critical part of the reform process, in the eurozone and across the European Union(EU). Only successful measures in this arena can bring about a lasting, future-oriented turnaround for Europe. The European heads of state have a much-needed opportunity to focus their Jan 30 summit meeting on strategies to reduce unemployment.

While the goal is clear - growth must be stimulated everywhere and unemployment must be brought down - we must resist the temptation to believe that there is any one-size-fits-all solution. Far from it. Each country can, and each country must, develop its own strategy for labor market reform. Each country, not Brussels or anybody else, is thus in charge of its own destiny. That is so for a very simple reason. Labor market conditions, requirements, options and challenges differ from one country to the next, often significantly.

Some countries have a very high share of services in their national economy, and thus depend greatly on domestic demand. Others rely heavily on exports and must prepare themselves from possible slowdowns on that front. Then there are also those who still have to evolve from an over-reliance on agrarian structures. Yet again others must focus especially on reducing dramatic levels of youth unemployment.