Illustration: Sun Ying

For quite some time, the major debate about the European crisis has revolved around the choice between austerity and growth, as if they are mutually exclusive.

Given the current circumstances in many European countries, there is no doubt that austerity is necessary, but it is not sufficient and will not solve the European crisis by itself.

On the other hand, while growth is needed and is indispensable to any meaningful European recovery, growth without austerity is unrealistic and is simply wishful thinking.

Even under the best circumstances, growth is easier said than done. But without growth, there will be no better tomorrow.

Therefore, the real choice for Europe is neither austerity without growth, nor growth without going through the pains and suffering of austerity. The real challenge is bringing about austere growth.

If the Chinese experience is of any relevance, 34 years ago, when Deng Xiaoping became the paramount leader of China, the country's economy was in tatters. Deng charted a new course, emphasizing development as the hard truth. The Chinese nation rallied behind this banner.

More than three decades later, and after having made tremendous sacrifices, China has profoundly transformed its economy. Today, China emphasizes development as the hard truth, and development is defined as being an integral part of this reality.

What China has called "development" is similar to what Europe now calls "growth," even though China views development more as a process than a result, and growth more as a result than a process.

On a macro level, the world is already in a global age. To compete efficiently on the international stage, every country needs to define its own competitive advantages and develop in its own unique way. While there is no ready-made development model to suit all, there is general agreement that the key to development is to improve efficiency and productivity.

Therefore, in the global age, European countries are no longer simply competing with each other, but with many other countries around the world.

Of course, countries differ a great deal not only in their circumstances and natural gifts, but also in whether they have superior organization, better business models, more efficient governance, and so on.

However, if we hold other factors as being equal, there is no reason to expect that some countries can afford to work less hard but achieve greater efficiency and productivity.

Therefore, many countries in Europe are faced with the daunting challenges of an age of austere growth. No one likes austerity for its own sake. However, austerity is a necessary evil in the overall scheme of lowering costs and jumpstarting growth.

Without going through such pains and sufferings, it is wishful thinking to expect that any growth can be achieved, and efficiency and productivity can be improved. One may talk about growth, but growth may simply refuse to take off. Meanwhile, more resources may be wasted and the European crisis may further deteriorate.

It is time for the EU to face up to reality and come up with effective action plans to deal with the challenges of the age of austere growth.

Realism, pragmatism, vision, courage and wisdom, and a willingness to make sacrifices for the greater good of growth are urgently needed. The sooner European countries can effectively deal with the challenges of the age of austere growth, the better the future will be for Europe.

The author is director of the China National Association of International Studies. gaovictor@hotmail.com