{"id":30667,"title":"A Fair Europe: Strengthening European Regions for a Just Twin Transition","link":"https:\/\/bst-europe.eu\/de\/investment-budget\/a-fair-europe-strengthening-european-regions-for-a-just-twin-transition\/","date":"7. Juli 2022","date_unix":1657179451,"date_modified_unix":1754483978,"date_iso":"2022-07-07T07:37:31+00:00","content":"

In our recent blog series on the future of European cohesion<\/a>, we discussed how EU regions diverge in terms of their economic output, as well as their capabilities and vulnerabilities with regard to the challenges of the green<\/a> and digital<\/a> transitions.<\/p>\n

This fourth and final article in the series argues that investing fairly and inclusively <\/u>in regions is key to ensuring the success of the twin transition. This means overcoming one-dimensional economic output perspectives and fortifying the European social pillar – ultimately fostering social wellbeing and prosperity for all.<\/p>\n

In response to the demands of the twin transition and the fallout of the war on Ukraine, the European Union has unveiled ambitious plans to establish energy independence and digitalize and green the economy quickly. Now, If the EU wants to truly fulfill the promise of its Cohesion Policy, \u00a0then it must keep the improvement of social cohesion in European regions at the heart of its efforts to fight climate change and achieve digital sovereignty.<\/p>\n

Social Cohesion: The EU’s promise to its citizens<\/strong><\/h2>\n

The process of European integration, particularly the European single market, has spurred economic growth across the continent. However, the EU aspires to more than just to reduce trade barriers and improve productivity. It aims to link upward economic convergence with societal progress.<\/p>\n

Article 3 of the Treaty of the European Union states that the EU „shall combat social exclusion and discrimination and shall promote social justice and protection.“ Promoting equality of opportunity and high quality of life for its citizens is, therefore, a self-proclaimed aim and duty of the EU. This remains especially true in times of crisis and transformation, as evidenced in European Commission President von der Leyen’s speech\u00a0at the Porto Summit 2021 when she emphasized the „social promise“ for all.<\/p>\n

This is not just a priority for the Commission but also an important desire of European citizens. Opinion polls show that social cohesion is a key demand of European citizens. For example, Eurobarometer surveys in 2021 have found that 9 in 10 Europeans consider a social Europe important to them personally.<\/p>\n

88% of Europeans consider a social Europe to be important for them personally (March 2021)<\/strong><\/p>\n

\"social<\/a>
Source: Eurobarometer Main results of the Special Eurobarometer on „Social Issues“ – Publications Office of the EU (europa.eu)<\/a><\/figcaption><\/figure>\n

Defining prosperity beyond GDP<\/strong><\/h2>\n

Knowing whether the EU is succeeding in fostering social cohesion requires measuring prosperity beyond economic growth. However, the primary lens through which socio-economic success is measured continues to be gross domestic output (GDP), even though the issues with a single output indicator are numerous<\/a>.<\/p>\n

Most importantly, GDP ignores the distribution and concentration of economic resources. It is also not suitable for understanding the levels of broader social wellbeing. For instance, GDP figures give no information regarding the distribution of life chances<\/a>, which can also be relevant for future economic growth prospects in a region. Nor do they provide insight into structural inequalities and the general quality of life.<\/p>\n

And although GDP and social indicators \u2013 such as access to the labour market, education, poverty risks, demographics, healthcare and security \u2013 often display a certain degree of correlation, confining the analysis of the state of cohesion towards closing the output gap does not help one understand the issue comprehensively. In addition, these correlations become increasingly unstable with higher levels of total economic development.<\/p>\n

In sum, GDP needs to be complemented by a comprehensive set of social indicators when measuring cohesion between and within regions and member states. This growing realization is inter alia reflected in the European Commission’s „beyond GDP initiative<\/a>“ and the ongoing development of stronger social initiatives in the EU within the last decade.<\/p>\n

Building a European social framework<\/strong><\/h2>\n

In the aftermath of the Euro crisis, the European social framework experienced significant change. Divisive austerity politics have gradually been overcome, and we have witnessed the further development of the European welfare model through the implementation of various social initiatives and legislation, including workers‘ rights directives, the European Social Fund, and most importantly, the European Pillar of Social Rights.<\/p>\n

Although the European Commission has long been vocal about improving social conditions for Europeans, it has mostly fallen short in defining clear social targets beyond employment. In 2021, however, a major leap was made with the Porto declaration for a more social European Union<\/a>, amended by European leaders and social partners.<\/p>\n

At the core of the declaration, a 13-point action plan aims to strengthen the European Pillar of Social Rights as the EU’s principal agenda to promote social cohesion. It is spearheaded by three headline targets to ensure social mobility and protection as well as equal life chances by levelling the playing field by 2030:<\/p>\n