ETLA Discussion Papers, The Research Institute of the Finnish Economy (ETLA) 1274
The EU is currently facing great challenges. Paradoxically, however, the crisis has demonstrated the endurance of the European model. The only long-term solution to the current challenges is to achieve sustained growth. To achieve this goal, Europe must balance austerity and expansion. In the current era of globalisation, the key to Europe's success is to avoid the commodity trap and to discover the sweet spots of global value creation.