Published every year, the report analyses the state of working Europe explaining with the aid of statistics and graphs the main trends in terms of Europe’s macro-economic situation, its labour market development, the situation of wages and collective bargaining, and worker participation. The focus of this year’s Benchmarking report is on the lessons learned – or not learned – from eight years of economic crisis and austerity policy. The findings point to policy failures and to the need to redefine alternatives in order to get Europe back on a sustainable growth path. The deterioration of the labour market and social situation in the EU, along with the appointment of a new Commission last autumn, have led to some renewed policy initiatives that seek to restore growth as a means of addressing the situation. The most notable of these initiatives is the Annual Growth Survey with its three pillars: the Investment Plan, fiscal responsibility and structural reforms.

Since 2001, the ETUC and ETUI have produced Benchmarking Working Europe for the European Social Summit to draw attention to the state of working Europe. This publication aims to provide a genuine benchmarking exercise applied to the world of labour and social affairs grounded in effective labour and social rights. It establishes what progress – or lack of it – has taken place in selected areas of significance for social Europe and of importance to the trade unions. This year’s edition of Benchmarking Working Europe focuses on what we see as one of the root causes of the great recession, namely the issue of inequalities going far beyond income inequality. Growing inequalities lead to growing feelings of injustice and lack of social cohesion both within and across countries, and at the same time, to a loss of human potential in its broadest sense. In this respect, this publication raises serious concerns as to the current direction of social and labour rights in the European Union. Four main messages which we would like to highlight are: 1. Social inequality, in its many forms, is worsening in nearly all EU countries, and not only on account of the succession of financial, economic and debt crises. 2. Between the EU member states, the trend for the poorer economies to catch up with the richer ones, leading to greater convergence has been halted and even reversed. 3. The European 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. 4. The political remedies must in future focus on a redistribution and ‘deconcentration’ of wealth.

Widening economic and social gaps among EU member states, as well as among different groups and categories of citizens within society, are not only placing in jeopardy the future of Social Europe but threatening to undermine also the whole project of European integration. The post-2008 recession and debt crisis, helped along by EU leaders’ obstinate clinging to the failing remedies of fiscal austerity, have accelerated the disenchantment of millions of European citizens with the half-century-old project to build and consolidate a European Union. This is one of the most striking conclusions of the ETUI’s Benchmarking Working Europe report for 2013. Benchmarking Working Europe is one of the ETUI’s regularly appearing flagship publications. Issued annually since 2002, the report offers an alternative perspective on EU developments. Using publicly accessible data, it reveals what is actually going on behind the EU social and economic affairs headlines. After last year’s issue focused on growing inequality in Europe, this year’s Benchmarking Working Europe report will demonstrate by means of hard-hitting graphs and cogent arguments that Europe is, rather than converging, actually drifting apart in numerous respects.