Reclaiming Europe’s Social Model: Insights from Eurofound’s Foundation Forum
At Eurofound’s 50th Anniversary Foundation Forum in Dublin, a core message was repeated: Europe’s competitiveness and its social model are not opposing forces but mutually reinforcing foundations for the Union’s future.
The discussions were rich in evidence and grounded in the realities of workplaces across the continent, underscoring the urgent need for a renewed commitment to human-centred leadership as Europe navigates the simultaneous green, digital, and demographic transitions.
Eurofound reminded the audience of a simple truth: economic development and social investment are not a zero-sum game.
According to Eurofound experts, the cost of women’s exclusion from the labour market amounts to €400 billion per year. In comparison, youth not in employment or education generate losses close to €100 billion annually. “If inaction comes at such a high cost, then investing in people must be treated as an economic imperative,” said Eurfound.
This argument has particular resonance at a time when Europe’s social model is once again being questioned under the banner of competitiveness.
Trade union representatives reminded the audience of the painful lessons of past austerity cycles, in which cutting wages, weakening collective bargaining, and reducing social protections did not enhance competitiveness but instead imposed a disproportionate burden on workers and undermined productivity.
Eurofound’s own data, echoed by the international Global Rights Index, confirms that countries with stronger social rights, robust collective bargaining systems, and active social dialogue are, in fact, among the most competitive globally.
Competitiveness thrives where rights are respected, where institutions are stable, and where workers and employers cooperate towards shared goals.
BusinessEurope highlighted that in a context of fast-moving technological transitions, social dialogue offers predictability, legitimacy, and the capacity for rapid crisis response.
Dr Daniel Susskind, Research Professor at King’s College London, a Senior Research Associate at the Institute for Ethics in AI at Oxford University.
The pandemic demonstrated how workplace-level agreements between employers and unions saved lives, allowing companies to maintain operations while ensuring safety.
Artificial intelligence and Digitalisation were at the center of the debate. European Commission’s Executive Vice-President Roxanna Mînzatu compared AI to “rain or sun,” an unavoidable force that must be managed with care.
Artificial Intelligence requires both openness to innovation and protective frameworks to ensure fairness, transparency, and human dignity.
Roxanna Mînzatu
Executive Vice-President for Social Rights and Skills, Quality Jobs and Preparedness
Leaders and managers must ensure their organisations benefit from technological progress without surrendering essential human oversight. The Commission’s focus on algorithmic management, ethical governance and digital skills illustrates the scale of preparation required.
Skills shortages—already widespread—are expected to intensify unless Europe strengthens its training policies, improves access to STEM pathways, and boosts basic skills among its workforce.
Li Anderson, Chair of the Committee on Employment and Social Affairs
Despite widespread consensus on the importance of skills, the Forum revealed a structural imbalance: employers currently fund around 90% of all workforce training.
According to the European Commission, to meet the EU’s ambitious goal of raising adult learning participation to 60%, a coordinated investment framework is needed, together with better recognition of qualifications, especially in strategic sectors affected by the green and digital transitions.
During the event, Eurofound was urged to monitor occupational mobility more closely, helping policymakers and managers understand how workers can adapt their skills and transition into new roles.
The Quality Jobs Roadmap, the Anti-Poverty Strategy, the Fair Labour Mobility Package, and the flagship Skills Intelligence Platform, a new inter-agency tool designed to unify labour market, skills, and transition data.
This integrated approach responds directly to the complexity of modern labour markets, where transitions are faster, skill needs more volatile, and policy responses more interconnected than ever.
Housing, mental health, disability inclusion and child poverty also emerged as pressing challenges. Managing transitions requires more than reacting to crises or chasing the latest technological trend. It demands strategic leadership grounded in values, cooperation and the belief that people remain at the heart of competitiveness.
For managers across Europe, these debates translate into a clear mandate. Leaders must champion a workplace culture where innovation goes hand in hand with responsibility, where training and lifelong learning are daily realities, and where social dialogue is a strategic tool.
About Eurofound
The European Foundation for the Improvement of Living and Working Conditions (Eurofound) is a tripartite European Union Agency, whose role is to provide knowledge to assist in the development of better social, employment and work-related policies.
Forum 2025 marked the agency’s 50th anniversary – a key milestone celebrating five decades of evidence-based contributions to social, employment, and work-related policies across the EU. This landmark event provided the opportunity to reflect on Eurofound’s legacy while looking ahead to the challenges and opportunities that will shape the future of work and society.
