Can the European Union Contain and Improve Income Inequality?
The chapter examines the results of EU-level actions regarding inequalities and their coordination with member countries. A comprehensive picture is drawn of income inequality and poverty for both the average EU country and the European Union as a single entity. Their linkages to the (combined) labour earnings received by households are explored. Contents and instruments of Europe 2020 flagship anti-poverty policymaking are analysed. Lessons are drawn for future EU policies concerning inequality, in particular for the recent European Pillar of Social Rights. As to policy contents, a strong focus on reducing the poverty gap is promoted, supported by introducing a child basic income and an earned income tax credit aimed at offering adequate minimum-income protection. The EU-level itself is addressed and inequality effects of unification scrutinized. Organizationally, a full and equivalent embedding in the dominant mechanism of EU social and economic policy making is advocated.