This is the first story in a series of posts highlighting the research, which was conducted with the support of the Center.
Europe is at a crossroads. The global financial crisis was a reckoning for many countries, leaving many wondering whether social mobility was still possible in some countries. While inequality is low relative to the US, some countries now face striking inequality in education and job prospects. Youth unemployment is particularly alarming.
A new report, “An Anatomy of Inclusive Growth in Europe,” by Zsolt Darvas and Guntram Wolff of Bruegel, the Brussels-based economic policy think tank, takes stock of how Europe is positioned to withstand the seismic changes that have gripped not only Europe but much of the developed world.
Darvas and Wolff make a strong case for an economic strategy focused on inclusive growth, defined as an approach that fosters opportunities for prosperity for all groups in a society.
The report’s key highlights include:
Since 2008, the gap has been widening, especially in Greece, Spain, Luxembourg, and Malta. Over time, the older generation is less at risk for falling into poverty while the younger generation is more at risk.
The authors call for more attention to inclusive growth policies as a path forward, with special attention to tax and growth policies and reforms to welfare schemes to make them more efficient, especially in southern Europe. Fiscal policies have cut into education and social programs for families while maintaining worker pensions, threatening to create a greater rift between young and old. The authors also call for education reforms to jumpstart employment among young adults and more “growth-friendly” economic and fiscal policies.
The Bruegel research was conducted with the support of the MasterCard Center for Inclusive Growth.
Up Next: An interview with author Zsolt Darvas highlights the report’s key takeaways for policymakers, business leaders and the research community.
Featured Photo Credit: Getty Images