With the EU's addition of ten new members and a likely slowdown in U.S. productivity growth, Europe has a chance to overtake the U.S. economy. To actually do so, however, it must boost its competitiveness with some much-needed reforms

If Washington wants to derail Iran's nuclear program, it must take advantage of a split in Tehran between hard-liners, who care mostly about security, and pragmatists, who want to fix Iran's ailing economy. By promising strong rewards for compliance and severe penalties for defiance, Washington can strengthen the pragmatists' case that Tehran should choose butter over bombs

Although neither China nor Taiwan wants war, both pursue policies that raise the risk of bloodshed: the first by issuing vague warnings, the second by testing their limits. To stabilize the situation, the Bush administration should help broker a temporary agreement under which Taipei would put off independence and Beijing would stop threatening to attack