Social Challenges for the Eurozone

Abstract

The economic crisis caused by the COVID-19 pandemic will have a severe and persistent impact in the eurozone countries. Experience has shown that there tends to be an upsurge in inequalities and social exclusion in periods of deep recession, while they are slow to recover in expansion. Social issues are, therefore, potentially the hardest hit and most difficult to remedy in the later phase of the cycle. Poverty, inequality, exclusion and social protection indicators are needed to address this situation. The aim of this chapter is to help propose social policies that anticipate the harsh and asymmetric after-effects of the current crisis on households in the different eurozone countries. Although the prospects look very bleak for some countries like Spain or Italy, the other eurozone countries are not impervious to this shock. It is, therefore, necessary to monitor the problems addressed here in all the eurozone countries and to analyse any divergences occurring over the coming months. Discrepancies in social indicators already existed before COVID-19, and, therefore, their starting points need to be estimated to make predictions for different scenarios. This is a crucial issue when it comes to taking proactive measures related to social affairs.