This week, trade unions in Europe will stage massive protests against the sharp turn economic policy in Europe has taken. After having saved the banking system from total collapse, governments throughout Europe are not only cutting public services and social benefits. On top of this harsh fiscal austerity, several member states also intend to inject an even greater dose of flexibility into their labour markets. These governments adhere to the conventional wisdom that, by allowing business to get rid of workers more easily, employers will advance in time the decision to (re)hire workers. In turn, the additional purchasing power coming from the frontloading of jobs would support aggregate demand and accelerate economic recovery.