Europe as an Economic Powerhouse asserts that Europe's economic performance is far below its true potential. Europe's twin challenges today are to overcome obstacles to meeting its fundamental objectives and to strengthen the economy in the face of increasing internal and external pressures. Part 1 analyses the state of the European Union, with a particular focus on social security, social justice, employment, and productivity. While the analysis recognizes best practice in the United States, it also points out that simply copying features of the US model is not the answer. Part 2 identifies a "European way" of boosting productivity sustainably to turn Europe into an economic powerhouse that is on equal footing with the US. The authors recommend concentrating on four critical objectives: completing the single market, adopting smart regulation, systematically pursuing category definition, and transforming the state system. The last chapter sets out a series of enablers of change including continued harmonization of Europe's educational systems, coping with the demographic problem, and better engagement in the ongoing processes of globalization.