Inclusive growth in the European Union - challenges and prospects

The aim of the paper is to analyze inclusiveness in Europe, present a snapshot of the current situation and assess longer term trends in terms of inclusive growth in European economies and societies. The paper is based on a literature review and data analysis. Ward's classification was performed to compare the progress made by Member States towards their national targets related to inclusive growth. The research methods applied allowed to assess the strengths and weaknesses of Member States and the European Union itself in achieving inclusive growth objectives. EU countries face social challenges and European economies are diverging in terms of social dynamics. In 2010, the European Commission placed inclusive growth at the heart of its economic, employment and social agenda - the Europe 2020 strategy and set ambitious targets to obtain it. The analysis show that since 2008, substantial progress has been made in the area of education where the EU is within reaching distance of both headline targets, while meeting the employment and poverty targets will remain challenging. There are also big differences in the progress made by Member States towards their national targets. Tackling poverty and social exclusion is among the most pressing challenges, yet poorly addressed, and the growth of poverty and inequality can further threaten the European social model.