The aim of this paper is to test empirically the relationship between life satisfaction, another term used for happiness, and macroeconomic indicators such as GDP per capita, which is a proxy for economic growth, unemployment, inflation, income distribution and government expenditure in the European Union countries during the period of 2005-2017. The chosen variables are some of the most significant determinants of economic growth as well. Using the Fixed Effects model, which falls under the Panel Generalized Least Square method, the empirical results are in accordance with the literature review and suggest that unemployment and inflation have negative significant impacts on life satisfaction. Additionally, higher government expenditures and a higher level of economic growth lead to a higher level of life satisfaction in the EU countries, while unfair income distribution leads to a lower level of life satisfaction. Keywords: life satisfaction, macroeconomic indicators, economic growth, EU