Italian Prime Minister Matteo Renzi attends a public debate about the European Social Democratic Party | Roberto Serra/Iguana Press via Getty Images Opinion Europe’s reformist revival Why we shouldn’t underestimate the impact of Europe’s young gun politicians.

Recent debates over Europe’s future are permeated by a sense of impending doom. The eurozone is an economic basket case, we’re told. The Continent is flooded with Muslim asylum-seekers, and inept political elites are about to be replaced by political extremists.

There are good reasons to be concerned about the Continent’s future. But the claims of an imminent catastrophe in Europe are greatly exaggerated. For one, the eurozone is growing, albeit at a modest rate of 1.5 percent. Refugees are arriving at a lower rate than they were last year. And while the likes of the National Front, Alternative for Germany (AfD), or Hungary’s Jobbik, have indeed captured the imaginations of some segments of the European electorate, they are far from commanding anything close to popular majorities.

As Europe slowly but surely runs out of options, the tendency will be toward a revival of thoughtful reformist thinking and leadership.

* * *

Italy is a good example. After trying every gimmick in order to avoid the inevitable, Italians appointed the social democratic Prime Minister Matteo Renzi in 2014. Since then, he has fought several uphill battles. His “Jobs Act,” adopted last year in spite of vocal opposition from unions, makes it easier to fire employees. That was essentially impossible for companies over a certain size under the previous law, making prospective employers think twice before hiring anyone.

Tax breaks have been introduced for low-wage earners, in an effort to bring down youth unemployment, hovering just below 40 percent. Renzi’s government is also taking a crack at the country’s antiquated bankruptcy legislation — a major hurdle to solving the banking crisis in an economy where non-performing loans amount to one-fifth of GDP.

Of course, those who say that Renzi’s reforms don’t go far enough have a point. Italy’s public finances are still in bad shape, and it remains to be seen how the Jobs Act translates into day-to-day regulatory and judicial practice. Still, Renzi’s efforts may very well mark the beginning of a broader trend across Europe.

France’s Economy Minister Emmanuel Macron has been making waves recently. His rise does not come as a surprise to the French: As a Parisian friend tells me, “Already 10 years ago, there was talk of him becoming president one day.” The former Rothschild banker and now member of the Socialist government pushed through a piece of legislation last year — known as the Loi Macron (the “Macron Law”) — that liberalizes some of France’s regulated professions, extends Sunday and evening trading hours, opens passenger transport to competition, simplifies redundancy procedures, and cuts red tape across sectors.

In spite of a wave of union-organized protests and the increasingly critical attitude of left-leaning media, his political movement, En Marche (“Forward”), has garnered a 38 percent approval rating, according to a recent poll.

French Labor Minister Myriam El-Khomri is another reformist voice in the cabinet. Her proposed labor reform would allow for more flexibility in work contracts, including remuneration of extra hours. More importantly, it would allow French companies to fire people on the basis of a documented change in economic conditions. Shocking as it may sound, only technological changes or a company shutting down are currently considered legitimate legal reasons for layoffs.

"The whole divide between the supporters and opponents of the memorandum with the Troika was artificial. The genuine problem was that we were bankrupt" — New Democracy leader Kyriakos Mitsoakis

Even in Greece, usually seen as a hopeless case when it comes to reform, the center-right New Democracy party is now leading in the polls over the far-left Syriza. Its new leader, Kyriakos Mitsotakis understands well that Greece’s woes are largely self-inflicted.

“The whole divide between the supporters and opponents of the memorandum with the Troika was artificial. The genuine problem was that we were bankrupt,” he said at a conference last year.

In addition to his background in business — he worked for Chase Manhattan and McKinsey in London — Mitsotakis can claim credit for some genuine reform successes. As minister for administrative reform, he oversaw the introduction of performance reviews and streamlining that resulted in the dismissal of 5,000 civil servants. The reforms were short lived: the performance evaluations have been since scrapped by Syriza and most employees have been hired back. Yet Mitsotakis’ reforms attempted to address a serious problem plaguing Greece, namely that the country’s public sector jobs carry a substantial wage premium relative to equivalent private opportunities, while the quality of public services remains disappointing.

Perhaps none of this is enough to disturb Europe’s continuing stasis. Credentials from top business schools, eloquent speeches, and political marketing campaigns will not save the Continent’s moribund economies — unless they are accompanied by a genuine commitment to reforms. However, in case these examples reflect a growing demand for sensible pro-growth reforms from the public, they might be a cause for hope that Europe’s economic future might just be salvaged.

Dalibor Rohac is a research fellow at the American Enterprise Institute. Follow him on Twitter: @daliborrohac.