A vibrant European labor market with full employment

Abstract

We sketch a visionary strategy for Europe in which full employment is quickly regained by 2020, income inequality is reduced and the economies are more sustainable. We call this scenario “vibrant”. It is contrasted with what would happen if present policies continue within the European Union (EU) and its member states. In the vibrant scenario, full employment is regained through more policy attention toward innovation and its underlying research and development (R&D), accompanied by more labor mobility within and between EU countries, in combination with a selective immigration policy based on labor market shortages. The road to full employment is embedded in a landscape with less income inequality and more “greening” of EU member states’ economies. We translate the vibrant scenario into policy proposals distinguishing between the role for the EU and that of the member states. We hope these proposals will affect the debate about the future of the European Union, also with regard to the pivotal role and responsibility of the European Parliament and European Commission. D31, D33, F55, I23, I24, I25, I28, J11, J18, J21, J31, J64, J83, O31, O38, O52

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