So important are financial markets with abundant capital, many traders and frequent transactions that more than 1,000 foreign companies have come to the United States to list their stocks, accepting the regulations of the Securities and Exchange Commission. A large market offers big capital. Europe's economies have sought equilibrium more than risk. And the policy has not served them well. Unemployment now is greater than 12 percent in France, Germany and Italy.
European countries prefer civil servants to entrepreneurs.
Those percentages compare to 0.2 percent of the U.S. work force employed in government. The statistics explain why the European countries have found it difficult to reduce their budget deficits to qualify for inclusion in the monetary union. But the European situation will change next year, as productivity improves thanks to the euro. With risks of currency changes between countries eliminated, companies won't need hefty reserves. Capital will be freed up to spur business.