A More Equal Europe: A Prerequisite or a Consequence of Increased Federalism?

Abstract

This chapter outlines what has happened to economic inequality in the European Union over the past decades. It does so from three different perspectives: (1) economic inequality in terms of differences in average incomes between EU countries, (2) economic inequality between citizens within the respective EU countries, and (3) economic inequality between all citizens of the EU. The different perspectives and their respective developments over time illustrate the importance of keeping track of all these different levels. With respect to questions concerning further integration or steps toward a more federal union some argue that these are necessary to achieve goals on social cohesion, while others instead argue that further integration is not possible due to inequalities being too large. The chapter concludes with a discussion about the impossibility of making progress on these issues without being clear on the different levels and perspectives on economic inequality outlined in the chapter.