Europe faces a historic opportunity. We need to reimagine European unity as a collective endeavour, as the only way in which we can turn threats to our way of life into the possibility to create a better life for all. This report focuses on three core areas where EU-wide political ambition and investment are truly necessary: Rapid technological change amid increasing global competition Increasing breakdown of the global climate and other ecosystems due to our economic system Growing threats to social cohesion and social sustainability from multiple trends Competitiveness, sustainability and inclusion have to be addressed together, holistically. This is why this report addresses all three with a focus on the complex interlinkages between them. The vital role of far-sighted investment is a key theme that emerges from this investigation. The critical role of European-level collaboration is another. Instead of merely adapting to change, we need to be proactive through timely reform and investment that sets us on a pathway towards a society that is productive, sustainable and inclusive, by design.

Selected Issues

Does Europe have an inequality problem? Amid the COVID-19 pandemic, many Europeans are certainly struggling. The rise of populist movements is another signal that something is awry. Many Europeans no longer see their economy as fair. But is this a problem of too much inequality, or just a problem of ideology? Is inequality even a bad thing? We need to consider the statistics on economic inequality, but also look beyond towards the lived experience of trying to make ends meet. We need to consider different ideas on the impact and significance of the inequality we see. Does inequality drive entrepreneurship, and thus innovation, through the struggle for upward social mobility? Or does inequality affect life chances, becoming entrenched, blocking social mobility and innovation? And does anyone really need a billion euros? If we have a euro to spare, do we create more happiness by giving it to the rich or to the poor? An old, once infamous, now oft-forgotten question in economics. Tessa Bending conducts research on social inclusion, social development and impact measurement at the Economics Department of the European Investment Bank (EIB). The department provides indepth analysis on critical investment issues to support international policy debates. This is the sixteenth essay in the Big Ideas series created by the European Investment Bank. The EIB has invited international thought leaders and experts to write about the most important issues of the day. These essays are a reminder that we need new thinking to protect the environment, promote equality and improve people's lives around the globe.

Europe is confronted by an intimidating triple challenge - economic stagnation, climate change, and a governance crisis. This book demonstrates how these three challenges are closely inter-related. A return to economic growth cannot come at the expense of greater risk of irreversible climate change. Instead, what is required is a reconceptualization of what is intended by 'economic development' and a fundamental transformation of the economy to a new 'green' trajectory, based on rapidly diminishing emission of greenhouse gases. This entails a much greater emphasis on innovation in all its forms - not just technological. Innovation policy must be placed at the very heart of industrial policy and indeed of economic policy more broadly. Other parts of the world are also facing varying forms of the triple challenge, and while the governance challenge may not be exactly the same as for Europe and the EU, Europe is uniquely placed to take the lead in addressing the triple challenge. While this may well entail certain costs in the short term, it will undoubtedly bring considerable benefits in the longer term. It should also encourage countries in other parts of the world to follow Europe's lead in this transformation process, thereby ensuring that climate change is kept within manageable bounds. Addressing the triple challenge would thus provide Europe and its citizens with a new sense of purpose, revitalizing the EU and 'the European project' over the decades to come.

The conservation of water resources together with environment protection will be a challenge for the European Union within the 21st century. Water management nowadays involves the cooperation of farmers, societies, industry and public administration. The solution based model of water protection in this book describes the creation of local water partnerships by local actors and stakeholders for the management of local water resources. These local water partnerships will enable the integration of the local community to comprehensively solve problems related to water security, while also cooperating with neighbouring partnerships. The local water strategy is based on local needs and priorities with reference to regional, national and global objectives. This strategy also provides for environment and species protection, as envisioned by the New Green Deal and the current EU actions to make the key economic sectors more resistant to climate change. The model for water protection can also be used to reduce the carbon footprint and environmental transformation within Europe.