The Divergence between Economic Growth and the Welfare Economy in the EU

Abstract

Well-being is a personal effect of adapting to an increasingly competitive economy or the price paid for the rapid growth of prosperity, in which risk is the essential engine of development. In a European context marked by successive crises (the period marked by the COVID-19 pandemic, the war in Ukraine, and internal political crises), the study investigates whether economic growth automatically ensures poverty reduction or whether redistribution policies are the critical variable.

The study consists of the analysis of 7 European Union member countries, from a comparative perspective, in the period 2019-2023, using a mixed methodology, combining quantitative analysis (panel data econometrics) with qualitative analysis (case studies based on the specialized literature).

The results of the study reflect that the success of a nation is no longer measured only by the capacity to generate wealth (GNI), but by the ability to distribute it equitably (AROPE and GINI). Romania is the European champion of economic growth, but remains lagging behind in terms of social cohesion, while Poland offers a model to follow for states in the process of rapid development.