By Sandra Parthie, president of the EESC Employers' Group

Reducing poverty in Europe begins with investing directly in people’s potential. Today, over 94 million Europeans — more than 21% of the population — remain at risk of poverty or social exclusion. Children and young adults are particularly vulnerable, and their marginalisation represents not only a human tragedy but also a waste of talent.

Indeed, fighting poverty cannot be disconnected from the engine that drives opportunity — economic growth. Anti-poverty policies must go hand in hand with strategies that foster competitiveness. A favourable business environment — one that encourages investment, job creation, and entrepreneurship — is the surest path to sustainable poverty reduction.

Employers are calling for measures that open up employment pathways and expand opportunities, rather than policies that rely solely on redistribution or short-term assistance. Tackling poverty requires creating conditions for people to participate in and benefit from the labour market.

Empowering entrepreneurship

Reducing barriers to entrepreneurship is vital for our economies. Entrepreneurs drive innovation, create jobs, improve household incomes, and frequently provide affordable goods and services in underserved communities. At the same time, however, their interests are often underrepresented and they face structural hurdles such as limited access to finance, excessive bureaucracy, and inadequate entrepreneurial education. This is especially true for young entrepreneurs, whose entrepreneurial ambitions are not sufficiently supported. Removing these barriers must be a priority if Europe is serious about upward mobility and long-term competitiveness.

The single market as a social tool

A functioning EU single market is one of the most powerful levers against poverty. Fully integrating the internal market could unlock over EUR 2.8 trillion in additional GDP by 2030. According to the IMF, even partial removal of internal barriers could lift EU GDP by around 7% without requiring additional budgetary resources. These gains would support both innovating and manufacturing regions, strengthening cohesion across the Union.

This is a transformative opportunity: poverty is best overcome not with ever-increasing subsidies, but by unlocking growth, innovation, and an entrepreneurial spirit within Europe’s social market economy.

Reducing poverty by empowering people to work, innovate, and succeed is both a moral imperative and an economic necessity.