The Benchmarking Working Europe 2012 report sees rising inequalities also happening in traditionally more “egalitarian” societies and points to a reversal of historical trends for poor(er) EU regions to catch up and converge with rich(er) ones. The report also criticises that an increasing number of workers (in particular young workers) are getting trapped in insecure and sub-standard contracts.
The study states that the EU’s discourse that new post-crisis growth will solve the “temporary” phenomenon of rising inequalities is fundamentally flawed. The link between growth and equality has snapped and the tide is no longer rising for all.
The report highlights that there will be no lasting way out of the crisis in the absence of a reduction in inequality. Policy remedies for exiting the crisis should therefore focus on redistribution and “deconcentration” of wealth.
The article was adapted from the presentation of the study by ETUI.