Reimagining European policy: skills, inequality, and the path to convergence

Abstract

In this chapter, we argue that the fading focus of the European policy agenda on inequality and skills is a mistake. We map the results of the book and its underlying research using the Utility–Technology Possibilities Frontier framework by Acemoglu (2024). The framework allows us to understand why major technological innovations are insufficiently adopted by companies. New technologies are mainly labour-enhancing and require different supporting policies. At the same time, policymakers need to understand that the workforce is not a homogeneous entity and that inclusive policies remain central for the future. The main recommendations focus on redirecting the convergence debate in Europe. Social and economic convergence are important, but they need to be part of a political convergence process.