(FORTUNE Magazine) – With European monetary union only a couple of weeks away, the time has come to take stock of one of the world's great postwar transformations. The euro, of course, marks not the first but one of the final stages of a much larger confluence in Europe, a melding of cultural and economic interests across the continent. And however bitter and divisive that process may have been, the fact remains that a united Europe has arrived, bringing with it new challenges for American business. With that in mind, FORTUNE decided to see how America stacks up--not only with Europe but with a pair of benchmark Asian economies.

Numbers cannot tell the whole story of any economy. They cannot capture the hesitancy or optimism of a continent. But they can draw our eye to things we might not otherwise notice. If you read the following charts and tables closely, for example, you'll see they point to some interesting questions: Americans make more money than anyone in Europe, but do they live better? Does the fact that European and American GDPs are nearly equal, even before the advent of the euro, portend at least a partial eclipse of the New World? Whatever your assumptions about transatlantic relations, a few of them are bound to be upset in the following pages.

HOW AMERICA STACKS UP

Economics EXPORTS PER CAPITA GDP GROWTH* As percent GNP in 1998 1999 of GDP purchasing power

U.S. 3.5% 1.5% 11.3% $28,020 Germany 2.7% 2.2% 23.6% $21,110 France 3.1% 2.4% 23.5% $21,510 Britain 2.7% 0.8% 28.5% $19,960 Netherlands 3.8% 2.7% 53.3% $20,850 Sweden 2.8% 2.2% 40.9% $18,770 Italy 1.5% 2.1% 27.6% $19,890 Japan -2.6% 2.0% 9.4% $23,420 South Korea -6.5% 0.5% 33.1% $13,080

Productivity

Europe is fortunate to be beginning its great single-currency experiment after a strong year. And notwithstanding rumbles from Russia and Latin America, more growth is projected for 1999.

The looming question is this: Why do the major European economies trail America in productivity in nearly every major category, often by a large margin? America uses capital about 15% more efficiently than France or Germany, and 9% more efficiently than Britain. That's an enormous advantage. As is Yankee ingenuity: Americans are far more inventive. Those are imbalances the euro alone cannot resolve.

INVENTIONS Percent of patents issued by U.S.

U.S. 55% Japan 21% Germany 6% France 3% Britain 2% South Korea 2% Sweden 1% Netherlands 1% Italy 1%

Health

As a percentage of GDP, the U.S. spends up to twice as much on health care as European countries do. Is that because America has dirtier air, fatter people, and worse drivers? Those are surely contributing factors, but the more important reason has to do with how medical care is delivered--mostly by the private sector in the U.S., mostly by government in Europe. That also helps explain why so many Americans have no coverage at all.

HEALTH-CARE SPENDING As percent of GDP

U.S. 14.0% Germany 10.5% France 9.7% Netherlands 8.6% Italy 7.7% Sweden 7.3% Japan 7.2% Britain 6.9% South Korea 4.0%

CAR ACCIDENTS Number injured per 62 million miles driven

U.S. 137 Germany 87 France 36 Britain 72 Netherlands 11 Sweden 33 Italy 63 Japan 129 South Korea 725

OBESITY Percent overweight

Men Women U.S. 19.9% 24.9% Germany 18.2% 21.3% France 8.6% 8.4% Britain 16.0% 17.0% Netherlands 8.4% 8.3% Sweden 5.3% 9.1% Italy 6.5% 6.3% Japan 1.8% 2.6% South Korea N.A. N.A.

CIGARETTE SMOKERS

Male Female South Korea 61% 10.8% Japan 57.5% 14.2% France 55.7% 43.1% Netherlands 53.2% 46.8% Italy 39.4% 26.5% Germany 32% 20% Britain 26% 28% U.S. 25.8% 24.1% Sweden 21% 20.7%

Work

Why do Americans make more money than Europeans? One part of the answer is simple: Americans work more hours and take only ten vacation days a year, the same as the Japanese. Everyone else takes at least 20 days--and the Italians average 26. La dolce vita indeed.

Technology

MOBILE PHONES Subscribers, PCs INTERNET HOSTS* percent of pop. Per 100 people Per 1,000 people

U.S. 25.0% 35.0 38.4 Germany 13.3% 17.0 8.8 France 15.4% 16.0 4.2 Britain 17.8% 20.0 12.6 Netherlands N.A.% 20.0 17.5 Sweden 37.0% 18.0 26.4 Italy 28.0% 11.5 N.A. Japan 36.0% 14.0 5.9 South Korea 18.0% N.A. N.A.

N.A. Not available. *Includes all hosts ending in ".com", ".net", and ".org".

Entertainment

1994 WORLD CUP VIDEO RENTALS BOOK PURCHASES Percent TV Per capita Per capita viewership per year per year

U.S. 7.3% 13.8 $95 Germany 25.8% 2.1 $122 France 18.0% 0.9 $58 Britain 29.9% 3.3 $63 Netherlands 43.0% 1.8 $78 Sweden 29.0% 2.1 $56 Italy 41.9% 0.7 $39 Japan 9.5% 7.5 $84 South Korea 22.3% N.A. $62

N.A. Not available.

Daily Life

VOTERS INCOME TAX POSTAGE RELIGION Percent who Highest Price of Percent of voted in last personal first-class households who national national stamp, in attend services election rate U.S. dollars regularly

U.S. 49.1% 40% $.32 51.6% Germany 82.2% 56% $.67 20.0% France 68.9% 54% $.55 N.A. Britain 71.5% 40% $.44 23.6% Netherlands 78.3% 60% $.43 28.9% Sweden 78.6% 55% $.65 10.0% Italy 85.0% 46% $.49 55.8% Japan 58.5% 50% $.68 N.A. South Korea 63.9% 44% $.36 N.A.

N.A. Not available.

REPORTER ASSOCIATES Suzanne Koudsi and Len A. Costa