By the Workers' Group

Paraphrasing Bill Clinton's 1992 campaign slogan – 'It's the economy, stupid!' which at the time very much resonated with American voters grappling with recession – seems more than appropriate today. You just have to look at the results of the latest Eurobarometer EU post-electoral survey which revealed that inflation and the economy were the main topics encouraging people to vote. 

No, there is no one-size-fits-all solution and economic hardship alone cannot explain all the troubles surrounding the elections ahead. However, it is safe to say that rising prices, cost of living and the economic situation were the main voter motivators in the EU last spring and across the Atlantic a few weeks ago. Not that the writing was not on the wall: it was the main concern (followed by poverty and social exclusion) back in early 2023. While macroeconomic indicators seem to give policy makers a pat on the back, the direct impact of inflation on essential goods like food and energy remains severe, disproportionately affecting those who spend a larger share of their income on these necessities. This comes on top of the pandemic recovery and its catastrophic policy response, with many countries still reeling from the aftermath of the 2008 crisis.

For decades, wages have been decoupled from productivity growth, causing the prospects of a better future to fade for many in Europe's working and middle classes. Political extremism and electoral turmoil are here to stay.

Addressing the cost-of-living crisis is crucial for Europe's future, as it highlights structural issues in our societies and economies while challenging the principles that uphold the social fabric of our democracies.

On 26 November, the Workers' Group met with several stakeholders to discuss this, and we invite you to revisit this discussion and join us in calling on policy makers to cut the buzzword spree, close their own skill gap and focus on what matters.