MARIO BALDASSARRI is Full Professor of Economics, at University of Rome "La Sapienza" and was appointed Viceminister of the Economy and Finance of the Italian Republic in June 2001. He is author of several books and scientific publications on a wide range of economic issues, including the role of government spending in economic growth, industrial policy, the labour market and employment.FRANCESCO BUSATO is a Phd candidate (Columbia University), Researcher at University of Rome "La Sapienza", and Advisor as a Senior Economist at the Research Office of Consip S.p.A. (Italian e-procurement agency). His current research interest involves Dynamic General Equilibrium Theory, Fiscal Policy, Finance and Asset Pricing, Auction theory and Mechanism Design.

• PART I: INTRODUCTION AND CONCLUSIONS A Discussion and a Proposal on How to Revive Europe...without Waiting for Godot the Prince PART II: THEORETICAL BACKGROUND, EUROPEAN UNION GUIDELINES, AND EMPIRICAL EVIDENCES Three Theoretical Achievements Economic Policies in the European Union Empirical Evidences PART III: ECONOMIC POLICIES FACE TO FACE International Framework and Alternative Strategies Easy Monetary Policy: Effectiveness and Limits Higher Spending, Higher Taxes and No Reforms Lower Taxes, Lower Spending, Higher Employment Appendix References