The series of labour market reforms recently introduced across Europe may have struck many observers in North America, as it did critics on the continent, as incongruous. The reforms, whose main purpose is to extend worker protection, come at a time when economic growth on the continent is slowing markedly. From the perspective of German, French, Spanish and European legislators, however, the reforms are sensible and timely, conducive to international competitiveness. How can these diametrically opposed assessments about such a fundamental matter be explained?