In December, Caritas Europa published a study “Going beyond economic growth – Europe’s role in building a just economy for the common good”. It also organized an event that brought together policymakers, civil society representatives and experts to examine Europe’s role in creating an economy focusing on social and environmental justice globally. The current focus, where economic growth rather than human dignity is at the centre, is both harming our planet and exacerbating poverty, inequality and injustices.
Several scientific assessments confirm that the current global model of resource use to deliver economic growth is driving an unprecedented triple planetary crisis of climate change, biodiversity loss and pollution. The EU’s
material footprint – the total amount of fossil fuels, biomass, metals and minerals it consumes – is currently an alarming 14.8 tonnes per capita annually, more than double what is deemed sustainable and just. This means
that if everyone lived and consumed like Europeans, we would need three planets. At the same time, the idea that increased economic growth will lead to the needs of all members of society being met is simply untrue. UN data shows that, in 2022, 9% of the world’s population was living in extreme poverty and according to the World Bank, in 2023, 45.6% of the global population survived on less than $6.85 per day.
In his foreword to the publication, Olivier De Schutter, UN Special Rapporteur for Extreme Poverty and Human Rights, states: “Placing all our hopes into achieving an increase of the GDP, as a precondition for everything else, betrays a worrying failure of political imagination”. Our analysis highlights the limitations and false premises of the EU’s economic model, particularly the “green growth” approach, was discussed at the Raw
Materials Week in December 2024. Discussions made continued, exponential economic growth sound sustainable. The report explores several policy initiatives in more detail: the European Governance Review, the European Green Deal (including the Social Climate Fund, the Circular Economy Action Plan and the Critical Raw Materials Act), the EU’s international Paris Agreement commitments and the Global Gateway.
The publication proposes an alternative framework for an economy based on social and global justice, human dignity and care for the planet. Key recommendations include reducing Europe’s energy and resource
consumption, ensuring corporate accountability and reforming international financial institutions to promote democratic, accountable and effective global economic governance.
The truth is that, within our current system, the economy often thrives if and when we exploit human beings. In the pursuit of economic growth, EU leaders are all too often sacrificing important principles for
marginal, short-term gains. We need to build a just economy and invest in a hopeful future” says Maria Nyman, Caritas Europa Secretary General.
This analysis lays the theoretical and practical basis for our organisation to join a growing movement advocating for a just economy that prioritises social and ecological well-being across Europe and globally.
You can read the whole book and summary from Caritas Europa’s website.
