Will Europe's economies regain their footing?

STOCKHOLM — What will Europe's growth trajectory look like after the financial crisis? For some Europeans, still nervous that their economies and banking systems might collapse, this is a little like asking a passenger on the Titanic what they plan to do when they arrive in New York.

But it is a crucial question to ask, especially when Europe has been facing so much outside pressure from the likes of the United States and the International Monetary Fund to focus on short-term Keynesian stimulus policies.

True, things are ugly right now. Europe's income is projected to fall a staggering 4 percent this year. Unemployment will soon be in double digits throughout most of the Continent, with Spanish and Latvian unemployment on track to exceed 20 percent. Europe's banking system remains sickly, even though many national governments have gone to great lengths to hide their banks' woes.