Equality as a competitive advantage: unlocking Europe’s full potential

Europe’s competitiveness depends also on its ability to mobilise talent, strengthen skills and create the right conditions for companies to grow and invest. Competitiveness and equality should therefore not be treated as competing objectives. When designed well, they reinforce each other.

In our Opinion on Equality and the competitiveness agenda, we argue that long-term competitiveness requires prosperous European companies. Only successful and resilient businesses can continue to invest in people, develop skills, create quality jobs and contribute to lifelong learning.

Europe must therefore offer a business environment that supports entrepreneurship, innovation and investment. Before asking for more rules, we need to use the toolbox we already have. Regulation where needed should be proportionate, coherent and effectively implemented, while unnecessary administrative burdens should be reduced. At the same time, equality policies can contribute to competitiveness when they help more people enter the labour market, develop their skills and fulfil their economic potential. 

Europe’s competitive strength should be built on productivity and quality, Growth, economic dynamism, social progress and equal opportunities can advance together. Prosperous companies have the capacity to grow, adapt and create employment. 

Labour and skills shortages are affecting sectors ranging from manufacturing and construction to healthcare, education and digital industries; demographic change is also reducing the size of Europe’s working-age population. Removing barriers to labour-market participation is therefore both an economic necessity and a social objective.

Better access to education, training, employment, entrepreneurship and leadership can help Europe make fuller use of the talent already available. This means supporting women’s participation in entrepreneurship, STEM sectors and leadership; improving employment opportunities for people with disabilities; enabling older people to remain active in the labour market; and ensuring that workers can continuously update their skills. 

Investment in human capital is one cornerstone of Europe’s competitiveness. Inclusive access to education, vocational training, reskilling and lifelong learning can help businesses address skills gaps while enabling people to adapt to technological and economic change.

Entrepreneurship ecosystems must also become more accessible. Reducing barriers to entrepreneurship, improving access to finance and strengthening entrepreneurship education can contribute simultaneously to innovation, job creation and social inclusion. A broader pool of entrepreneurs, researchers and business leaders can bring new ideas into the economy and support the development of products and services for a diverse European market.

Particular attention should be paid to SMEs. Once again, we need to look in our existing toolbox before asking for new legislation. When needed smaller companies must be provided practical guidance and proportionate support to implement equality measures without facing unnecessary complexity or costs. 

Social partners also have an important role. Social dialogue and collective bargaining, in line with already existing national legislation and practices, can support innovation, skills development, the management of technological change and sustainable restructuring. 

Europe needs a long-term understanding of competitiveness that combines productivity, innovation and investment with labour-market participation, skills, job quality and social cohesion. The objective should be a European economy in which companies can prosper, and people can contribute their talents. Equality, approached pragmatically and supported by a competitive business environment, is not an additional burden. It is part of the solution.

By Julia Berglund, EESC Employers' Group member and Member of the Study Group of Opinion SOC/874 Equality and the Competitiveness Agenda.