This paper makes two important contributions. Firstly, it uncovers some of the main economic determinants driving the dynamics of public education spending in Europe. Drawing mainly on the insights provided by Baumol's cost theory, the baseline specification uses unit labour costs and real GDP...

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...