I’d agree, but outsized severance packages are one of the reasons Europe snaps out of recession slower than the US. It especially affects entry level jobs, contributing to Europe’s higher rate of youth unemployment.

Companies are afraid to go on a hiring spree when the economy picks up because they’d be assuming liability for severance if the new business venture doesn’t work out.

Best of both worlds is to make it easy to hire and fire, but ensure there’s a strong social safety net for workers caught out by a recession.