Foundation Forum 2025: Europe’s social model – the key to competitive growth

EU policymakers have an existential opportunity to pursue prosperity and growth – but not at the expense of people and planet. Prosperity and growth have to come from technological progress, which will drive ever-more inventive ideas, making growth smarter.

Promoting quality jobs will be key to a competitive Europe. Jobs that promote skills development, grant worker autonomy and give workers a genuine voice provide the basis for sustained innovation.

Ensuring high levels of employee engagement is critical in an era of massive technological change. Companies that invest in development and ‘take the pulse’ of their employees on an ongoing basis achieve higher levels of engagement and are better able to pivot and maintain performance.

Support for human-centric, participative development is essential for competitive AI deployment. When workers help shape AI tools, adoption improves, understanding of the technology deepens and solutions better meet both employee and business needs, reflecting the European social model.

Housing shortages need to be addressed through boosting supply rather than incentivising demand, particularly in high-growth areas where this issue poses a real constraint on growth and competitiveness.

Europe needs more long-term coherent thinking for investment in human capital and social services. Policymakers at both EU and national level need to embed social investment in strategic economic and social policy rather than treating it as optional.