This volume brings together a group of leading scholars to examine issues relating to unemployment and social security in Europe, focusing on how to promote employment and how to reform social security. The crucial issue of the financing of public pension systems is also addressed, including an examination of the politically difficult solution of a more fully funded system. INDICE Part 1 How to promote employment: a misguided monetary policy at the basis of the European unemployment, F. Modigliani, M. Ceprini employment performance and employment policies in the EU, B. Moro productivity and job creation in US and Europe, R.M. Solow working hours and employment, R. Paterno employment issues in the banking system, C. Salvatori potential alliances between public and private sectors for a new welfare state - the foundations case, G. Guzzetti the Italians vs the European Union social expenditure - a comparison, E. Letta. Part 2 How to reform social security: welfare state and pensions in Italy who benefits? who pays?, M. Baldassarri how to save the pension - reforming the financing of the European social security systems - the case of Italy, F. Modigliani, M. Ceprini welfare - the British proposal, Baroness Hollis of Heigham the Italian system of social security, A. Brambilla public and private welfare - a choice, M. Orio capitalising the future of the pension system, R. Illy social security - system founded on three pillars, C. Salvi