Have crisis exit strategies increased social disparities?

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Contrary to the European goal of convergence, a phenomenon of social and employment divergences has been observed among Member States, particularly in the eurozone, since the crisis.

Recent developments in social and employment matters in Europe are no longer characterized by a progressive convergence of situations among Member States, unlike what was observed before the crisis.

Since 2008, Northern countries and some Eastern countries have shown more resilience to the crisis than Southern European countries, which are engaged in an uncertain adjustment process. Gaps are widening in several areas โ€” the wealth level of states, employment, poverty, and the situation of the youth.

This phenomenon of social divergence is partly explained by the unsustainable trajectory of Southern countries during the 2000s: the apparent social convergence โ€” evolution of salaries, level of public social expenditures, unemployment rate โ€” occurred alongside a decline in overall factor productivity and a real divergence between the economies of the South and the North of the eurozone.

Since 2010, the differentiated impact of adjustment plans has contributed to widening social performance gaps among these countries, without redefining the foundations for a real convergence of the economies.

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