Can Europe compete?

Although the creation of the European Union has created lots of positive things in Europe such as a half-century of peace, growing cooperation, including the former Soviet-bloc countries to EU and a common currency, the continent has its share of problems. For one, the countries have prospered but not as much as previously expected. Although unemployment in Wester Europe (EU-15) has declined, the standards of living has been lagging. There is also the looming problem of the aging of most of the professional workers in the continent. There is also a decrease in the number of working hours for European as compared with their American counterparts. In addition, the type of capitalism they choose seems to be working against them. For one, the European economy depends so much on giant firms and the lack of institutions to balance the power of large firms. Firms are also always reluctant to shred some unproductive employees which leave them not hiring potentials and leave these workforce for finding greener pastures.