American economist Paul Krugman analyzes the common myth that Europe is hopelessly behind the United States in economic and technological development. He believes that the official labor productivity indicators are greatly distorted due to methodological differences in statistics and the concentration of breakthrough IT technologies in only a few American regions. Comparing purchasing power to the actual standard of living, Krugman says that the level of wealth and rate of progress on both sides of the Atlantic are actually similar. However, differences in GDP per capita are often explained by social choices, such as longer vacations in European countries. Although Europe has unresolved issues and needs to complete the single market, its economy remains stable and fears of a lost future are greatly exaggerated.

American economist Paul Krugman analyzes the common myth that Europe is hopelessly behind the United States in economic and technological development. He believes that the official labor productivity indicators are greatly distorted due to methodological differences in statistics and the concentration of breakthrough IT technologies in only a few American regions. Comparing purchasing power to the actual standard of living, Krugman says that the level of wealth and rate of progress on both sides of the Atlantic are actually similar. However, differences in GDP per capita are often explained by social choices, such as longer vacations in European countries. Although Europe has unresolved issues and needs to complete the single market, its economy remains stable and fears of a lost future are greatly exaggerated.