By: Dethlefsen K. et al (ed) (2014)
In the last few years, Europe has been forced to re-think its socio-economic model. Real household income declined significantly between 2008 and 2012, employment rates are lower and the number of people in poverty saw a steady rise with a growing divergence between EU countries. With all the difficulties of defining and measuring ‘fairness’, it is clear that the adjustment has not been equitable. Apart from issues of market failure, there have been direct increases of inequality within each of the member states. Higher poverty rates have been observed, rises in inequalities between higher and lower income earners as well as intergenerational inequalities between age groups.
In this report, the authors first of all look at the results of the survey they have carried out in seven European countries and review perceptions of the socio-economic model. Subsequently, we assess the importance of the social dimension in the broader context of the European growth model. It has been discussed the impact of the structural challenges of globalisation, demography and technological change, and then review the EU’s performance in the crisis.