Europe is in a serious crisis but that it can face up to these challenges. In Europe's Growth Challenge Anders Aslund and Simeon Djankov argue that the European Union can only be successful if it carries out substantial changes in the European economic system.

European society benefits from equality in income, excellent healthcare and basic education, good infrastructure, and developed institutions for the rule of law. But Europe has entered a period of economic stagnation and is distracted by multiple challenges. Economic and political strains have stalled vital reforms, while the threat of disunion is evident.

By focusing on what works in Europe and the great variations within Europe, Aslund and Djankov show how Europe can develop a strategy for higher economic growth. They advocate a reduction of the fiscal role of the state, an opening up of services and digital trade, an easing of the regulatory and tax burdens on labor, an improved environment for startups and innovation, pension reform, and the development of Europe's energy union.

In spite of Europe's many achievements, Europe needs to address its growth challenge to stay afloat. Aslund and Djankov provide novel insights and provocative ways forward.

Anders Aslund is a Senior Fellow at the Atlantic Council in Washington, DC.
Simeon Djankov is a Visiting Fellow at the Peterson Institute of International Economics and Rector at the New Economic School in Moscow. Since November 2015, he has been a visiting professor at the London School of Economics.

1. What Is Right and Wrong with Europe?
2. Limit the Fiscal Role of the State
3. Taxes That Support Entrepreneurship and Growth
4. Reforming Pensions
5. Open up Services and Digital Trade
6. Creating Jobs
7. Cutting Red Tape
8. Developing a Single Energy Market
9. Catching-up in Innovation
10. Conclusions: How Europe can be turned around