MARIO BALDASSARRI is Professor of Economics at the University of Rome La Sapienza, Italy. He was Managing Editor of the Rivista di Politica Economica from 1989 to 2001 and has written extensively on growth, fiscal policy and labour markets.

• PART ONE: 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.Paternò 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 TWO: 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