> Firing easily and hiring easily are two sides of the same coin. If you can be fired easily, you will find a job easily. If companies can go down quickly, new companies can be formed in an instant.
> In Europe where firing is almost impossible, hiring is a very tedious process.
This is, at best, an anecdote. I'm charitably saying anecdote to avoid calling it utter bullshit. The average hiring process at companies I'm familiar with -- in the UK, France, Germany, Finland, the Czech Republic, Portugal and Greece, so I guess it's a reasonably large sample -- is no more complicated than the hiring process at Google or Facebook. And, much like in the US, if you stay away from the big players -- like Google or Facebook -- the average hiring "process" is a technical interview + a short interview with the hiring manager and HR. Popular enough companies may do a phone screening but that's about it.
Firing someone for bad performance is not "almost impossible". I have, unfortunately, had to sign off on that a couple of times. What is almost impossible is firing someone for bullshit reasons and writing it off as "a bad fit".
Of course there are legal protection in place: if you are laid off and can't find work -- for example, because you relocated to stay with your current employer when they moved offices, and were promptly laid off afterwards, in a new town with somewhat uncertain prospects -- the solution you're offered, in most countries, is not stop being poor, lol, but various forms of social protection so you don't starve before your next interview. Consequently, yes, it's important to make it difficult to fire people because they don't bend to toxic management or poor working conditions, otherwise that'd just be sponsoring incompetent management.
> Companies are big and look financially stable because the little ones cannot survive or dont enjoy the same monopoly / legal protections.
That is not even an anecdote. Except for Eastern Europe, where the Iron Curtain interrupted the history of most businesses, there are plenty of small companies, in every country, that have been operating more or less without interruption since the 1800s (and usually the interruptions were on account of one of the World Wars). There are four of these within a ten-minute walking distance from where I'm staying.