Equality is a driver of competitiveness, not just a fundamental EU value

Removing discrimination and inequalities is essential to unlocking Europe’s economic potential and making better use of its workforce. An opinion adopted by the European Economic and Social Committee (EESC) on equality and the competitiveness agenda stresses that removing barriers and ensuring equal access to employment, education and economic opportunities can help boost productivity, foster innovation and address labour shortages. The text calls on the EU and its Member States to make the principle of equal treatment a central part of their economic strategies.

As Europe faces growing global competition, demographic change and persistent labour shortages, many people continue to encounter barriers to education, employment, entrepreneurship and leadership. These obstacles prevent Europe from making full use of its workforce and economic potential, undermining productivity, innovation and long-term growth.

Women, LGBTIQ+ people, persons with disabilities, older and younger people, migrants, ethnic minorities and people facing discrimination on grounds of religion or belief are among those disproportionately affected. These barriers can overlap and reinforce one another, further limiting opportunities to participate in economic life.

Equality as a key driver of competitiveness

In an exploratory opinion (SOC/874) requested by the Irish Presidency of the Council and adopted at its October plenary session, the EESC rejects the view that equality and competitiveness are competing objectives. Instead, it argues that reducing inequalities and removing discrimination can strengthen productivity, innovation, resilience and social cohesion.

The opinion, drafted by Rebecca Sunnus, stresses that equality should not be treated simply as a matter of fundamental rights and social justice, but also as a strategic economic asset. Policies that broaden participation, increase access to opportunities and enable individuals to contribute fully to economic life can help Europe respond to labour shortages while strengthening its competitiveness.

"Europe cannot afford to leave talent on the table. Every woman pushed out of work by lack of childcare, every person with a disability shut out by an inaccessible workplace, every young person or migrant whose skills go unrecognised is a loss for our economy as well as an injustice. Equality isn’t a cost we pay for competitiveness – t is one of the foundations competitiveness is built on", said Sunnus, welcoming the Irish Presidency’s initiative to put this question on the agenda.

Closing gender gaps

Gender inequality remains one of the main obstacles to Europe’s economic potential. Despite considerable progress, women continue to be underrepresented in leadership positions, entrepreneurship and science, technology, engineering and mathematics (STEM), while being overrepresented in traditionally lower-paid sectors.

Women also continue to perform a disproportionate share of unpaid care work, often forcing them to reduce their working hours or interrupt their careers. The EESC considers these inequalities both socially unjust and economically inefficient.

The Committee calls for stronger efforts to close gender employment and pay gaps, promote women’s participation in entrepreneurship and leadership, and ensure equal access to career development opportunities. It also stresses that affordable, accessible and high-quality childcare and long-term care services should be recognised as an essential part of Europe’s productive social and economic infrastructure.

The EESC welcomes the European Commission’s initiatives to support implementation of the EU Pay Transparency Directive, while noting that the majority of Member States have yet to fully transpose it into national law.

Unlocking the economic potential of disadvantaged groups

The employment gap between people with and without disabilities is one of the clearest examples of untapped economic potential. The Committee calls for effective enforcement of disability rights and anti-discrimination legislation, accessible workplaces, reasonable accommodation and inclusive recruitment practices.

Supporting older workers

It also highlights the importance of supporting older workers through lifelong learning, flexible working arrangements and age-friendly employment practices, enabling longer, healthier and more sustainable working lives.

Safeguarding equality in Europe’s economic transformation

The EESC welcomes the renewed focus on European competitiveness and recognises the importance of strengthening innovation, attracting investment, improving the functioning of the single market and reducing unnecessary administrative burdens.

However, it warns that competitiveness cannot be achieved through productivity and regulatory efficiency alone. Long-term economic performance also depends on investment in human capital, quality jobs, effective social dialogue, strong public services and the ability to mobilise everyone’s skills and talents.