A solution of Europe's balance of payments problems is essential if the present standards of living of Europe's populations are to be maintained. In itself, however, the restoration of equilibrium in foreign payments will not contribute to the raising of living standards; it is even possible that in the process of restoring financial solvency, standards of living might have to be lowered. The more fundamental problem of the European economy is the increase in the productivity of European industry and agriculture which alone could satisfy the universal desire for better standards ofliving.