EU’s “Fit for 55” plan, its economic impact and intergovernmental perspective

Abstract

Sustainable development is a foundational element in European Union (EU) policies, yet there remains a lack of coherence among member states regarding the perception and response to environmental challenges, resulting in regional inequalities. The “Fit for 55” initiative by the EU is an ambitious strategy aiming to reduce greenhouse gas emissions by 55% by 2030, as part of its broader goal of achieving climate neutrality by 2050. This study investigates the economic impact and intergovernmental dynamics of the “Fit for 55” plan, analyzing its potential to not only meet environmental targets but also to foster economic resilience and social equity across the EU. The purpose of this study is to assess the effectiveness of the “Fit for 55” initiative in harmonizing environmental goals with economic and social policies among diverse EU member states. The study reveals that while the initiative offers significant potential benefits, such as stimulating innovation and creating jobs in green industries, it also faces considerable challenges, including economic disparities among member states and the social impacts of rapid decarbonization. These findings highlight the need for integrated approaches that address both environmental sustainability and socio-economic equity.