Monday, September 05, 2005

Europe is 'heading for third world status'

Europe risks becoming a "second- or third-world region" within a generation because strict labour laws are preventing companies from restructuring properly, according to the author of a Government-sponsored report out today. The study "i2010 - Responding to the Challenge" criticises large European countries, particularly France, Germany, Spain and Italy, for not having the courage to reform archaic labour laws. David Lewin, who co-wrote the study, said that after decades of productivity growth, European countries were falling behind the United States because of a lack of investment in information and communication technology (ICT). Mr Lewin warned that without more investment in ICT then "Europe will lose the technology and fall behind and become a second- or third-world country within decades". Companies in Europe had to pursue a policy of "creative destruction" to change the way they do business and learn from the "hire and fire" culture of the US to compete with emerging Asian companies. Mr Lewin added: "It is all down to employment law. In the US if you are made redundant three or four times that is normal, but in Europe there is a stigma."

1 Comments:

At September 05, 2005 7:13 PM, Blogger Ethnocentrist said...

Europe risks becoming a "second- or third-world region" within a generation because strict labour laws are preventing companies from restructuring properly, according to the author of a Government-sponsored report out today.

Yeah, that's the reason Europe will fall into second or third world status, I'm sure. I'm also sure the influx of countless immigrants into more than generous welfare states that cause significant and identifiable economic hardships on the countries and native people hardly plays a role in less and less funding for education, technology and infrastructure investment. Yep, we have the answer now.

 

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