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Seminar paper from the year 1999 in the subject Economics - Job market economics, grade: B, California State University, East Bay (Managerial Economy), course: MBA Programm Hayward CA/Vienna, language: English, abstract: AbstractEuropean economy suffers of high unemployment and welfare costs loom large.The necessity of taking actions arose. One of them is widely discussed as the introduction of the 35-hours week in European economies. Due to the influence of major economic and social changes, traditional structures are started to be set off. In the fight for market shares, to positioning themselves on the world markets, and to enhance productivity, performance and competitiveness, changes in the European economic thinking process have to be triggered - action plans need to be developed.I chose the Volkswagen AG to give an example, how a model (cutting weekly working-hours and wage-rates likewise) is already working. VW followed through a concept without detours and without getting back hidden benefits by keeping open back doors. They demonstrated, how an even bigger step than the one above is to be realized. They passed all pros´ and cons´, on which other German companies and European Countries could not agree upon by realizing a competitive model. This paper should give an impression of the effect of such a launch on employment, output, wage rates, techniques and technological progress.