Nevertheless, it may be possible to minimize these costs through wise selection of the jurisdictions between which transactions take place. Labor laws and regulations are not addressed by the monetary union. Given the large variation in labor costs from country to country, it may be the most important factor in a business's choice of location. Differences persist because of protective local laws and because Europeans are more reluctant than Americans to move in search of work. Generous unemployment benefits further discourage worker mobility, while the cost and regulatory obstacles to laying off unneeded employees deter new hiring in many countries.
European labor is more organized and more militant than are American workers.
Americans accepted the disruption and retraining that went with the corporate restructuring of the 1980s and 1990s. It remains to be seen if Europeans will. Any business selling, producing or investing in Europe must understand how different the European economy is from what it was just a few years ago. Though the merger of currencies and central banks poses problems and questions that cannot yet be answered, the push toward uniformity in outlook, financing and governing law has contributed to optimism and resurgent economies. The vigor of the single European economy will be additionally stimulated by factors that are not laid out in any regulation, but that are an inevitable consequence of union.