Nine facts about growth, investment and employment in the EU
In addition to the Russian invasion of Ukraine, the informal EU summit on 10-11 March will focus on the new growth and innovation model for 2030. For a long time now, the EU has been working to develop joint strategies to promote growth, investment and employment in Europe, not least with the aim of ensuring resilience to crisis. A look at nine key facts.
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Strengthening the EU economy and remaining competitive. The informal EU summit will also focus on the new growth and innovation model for 2030.
Photo: Getty Images/iStockphoto
- The single market is a vital contributing factor to the EU’s growth and competitiveness. It makes the EU 643 billion richer every year, with 132 billion euros of this going to Germany.
- Collectively, the 27 countries of the EU are the third strongest economic power in the world. In terms of global exports, the EU is in fact in second place – just behind China and well ahead of the USA. Due to its role as a global economic hub, the EU is able to set fair and future-oriented environmental and labour standards worldwide through its trade agreements.
- EU member states have been working hard to combat unemployment since the early 1950s. And they have been successful: the unemployment rate in the EU has been steadily decreasing since 2013. At the moment, despite the coronavirus pandemic, it is at a record low of 6.4 percent. In 2013 the unemployment rate was still 11.7 percent.
- The EU Youth Guarantee was introduced in 2013. This has also been a great success: after seven years, the number of young people who were not in employment, education or training had decreased by 1.7 million (pre-pandemic).
- The European Social Fund+ (ESF+) is the European Union’s central instrument for supporting employment in Europe. With a budget of 99.3 billion euros for the period 2021-2027, the ESF+ provides targeted support for initiatives in the areas of education, employment and social affairs. One focus of the ESF+ is the fight against social inequality and poverty in EU member states.
- The EU is committed to sustainable green growth. The European Green New Deal (EGD) aims to make the EU a climate-neutral continent by 2050. Extensive investment in research and innovation is also aimed at strengthening the EU’s growth and competitiveness. The Fit for 55 package is an intermediate step towards meeting EGD targets: it aims to achieve a 55 percent reduction in carbon emissions by 2030 while protecting and strengthening the EU’s competitiveness.
- The Next Generation EU Development Fund is an investment in our future – a future in which Europe is to become greener, more digital and more resilient to crisis. The fund provides 806.9 billion euros, with more than 50 percent of this going into a broad-based EU modernisation initiative. The focus here is on innovation, research and digitalisation. 30 percent of the fund will also go towards expanding climate protection.
- Strengthening competitiveness is one of the EU’s key objectives, and extensive investment in research and innovation is essential here. The EU is making 95.5 billion euros available up until 2027 through its Horizon Europe programme. The aim here is to develop innovation and research so as to strengthen the EU’s competitiveness and growth in the long term.
- The European Regional Development Fund (ERDF) will provide 200.36 billion to EU member states over the period 2021-2027 – the equivalent of around 18.6 percent of the EU’s long-term budget. The ERDF has two main objectives: investing in growth and jobs across Europe and strengthening European territorial cooperation. The ERDF offers financial support for businesses, particularly in the areas of innovation, digitalisation and climate protection.