Recommendations for Europe

Chapter 2: The European Imbalance: Try a fiscal devaluation / Cut expenditure rather than raising taxes during fiscal consolidation / Reduce the Greek debt overhang
Chapter 3: Labour Market Reforms and Youth Unemployment: Two-tier labour markets should be eliminated / Make dismissal costs for firms modest and predictable / Reconsider the automatic, legally binding extension of wage bargains across sectors / Vocational education, training and apprenticeships
Chapter 4: US Precedents for Europe: Establish a common state before federalising debt / Limit liabilities / Fiscal Equity / Ensure that Europe's central bank is flexible and strictly governed / Set up a US-style settlement mechanism in Europe