CRISIS, AUSTERITY, AND COHESION: EUROPE'S STAGNATING INEQUALITY

Area of Science:

• Economics
• European Studies
• Social Inequality

Background:

• Europe experiences significant economic inequality, often underestimated by the European Union.
• For years, inequality declined due to catch-up growth in less affluent member states.
• Internal inequality within member states has frequently increased concurrently.

Purpose of the Study:

• To analyze long-term trends in European inequality.
• To examine the impact of economic crises and austerity on inequality.
• To assess the current state of inequality in the European Union.

Main Methods:

• Analysis of long-term economic and social data across European Union member states.
• Examination of the effects of the 2009 Great Recession and subsequent austerity policies.
• Trend analysis of inequality indicators in the context of overall economic growth.

Main Results:

• Overall European inequality has been falling for many years, driven by convergence.
• Crisis and austerity measures have interrupted and reversed this downward trend.
• Inequality rose during the Great Recession and has since stagnated amid weak growth.

Conclusions:

• The long-term decline in European inequality has been curbed by recent economic shocks.
• Austerity measures and economic downturns have led to a plateauing of inequality levels.
• Future trends in European inequality are uncertain, linked to overall economic performance.