2024 is a significant year for the European Union (EU), with a fresh Commission taking office, new political priorities shaping the EU for the next five years, and new fiscal rules entering into force. In this brief, we consider the implications of these changes for future generations. We outline why young people should care about EU economic governance, while providing a critical perspective on the current economic governance framework and its failure to rise to the challenges of climate change.
New generations desire structural change in European economic governance. According to the 2024 World Happiness Report, young people are less happy than older generations. Concerns about energy poverty, housing and the cost of living are prevalent among the youth, and many are sceptical about whether the new fiscal rules will address these challenges effectively. In recent years, we have witnessed temperatures increasing, sea levels rising and a large spike in climate-related disasters. Public expenditure is crucial for supporting the green transition and protecting against these disasters. Governments need to invest more in areas such as renewable energy, public transport and housing. Arguably, the new fiscal rules will restrict the ability of Member States to invest in these areas. To achieve intergenerational justice through green transition, the EU must continue to adapt its economic framework.
