Along with the sovereign debt crisis, the Eurozone is facing a massive economic slump. The irony is that these countries have a huge pool of untapped resources. The resource is in the form of 90% of the more than 12 million Eurozone unemployed youth. An article in Forbes suggests that if these youth are rightly mobilised, they could generate about US$ 38 bn in annual government revenues. In addition, the purchasing power that these newly employed people would exercise, would provide the necessary economic stimulus to these ailing economies. But how can the potential of these human resources be harnessed? The article suggests creation of special economic zones in the remote hinterlands of countries such as Greece, Spain and Italy.

In fact, China's fast growth story has its roots in the special economic zones such as Shenzhen. The Shenzhen idea has even worked in a country like North Korea. So what stops it from working in Europe? The biggest roadblock is draconian labour laws. For instance, in case a business venture fails, Italian laws make it nearly impossible to cut down the workforce in order to make cost adjustments. Such restrictive labour laws make these countries highly uncompetitive. Employers avoid expansion and hiring even if the possibilities exist. For the Eurozone to really bounce back, it has to go back to free market liberalism, the same principles that were responsible for their development in the 20t h century