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Investing in People’s Competences A Cornerstone for Growth and Wellbeing in the EU

Author

Listed:
  • Anna Thum-Thysen
  • Rossella Cravetto
  • Jan Varchola

Abstract

This paper was initially prepared as a technical background note for the first joint ECOFIN and EYCS (education) Council formation meeting on 8 November 2019. Ministers exchanged views on the role of education and training in contributing to long-term sustainable growth and shared best practices on policies promoting efficiency and effectiveness of investment in education and training. The main messages were reported by the Finnish presidency to the President of the European Council on December 11th 2019. Investing in people’s competences is one of the best investments a society can make. It enhances economic growth and well-being, especially against the backdrop of current developments such as digitalisation and climate change. The COVID-19 pandemic has had a major impact on education and training systems in Europe, which had to adapt quickly to new and challenging realities, ways of learning, teaching and communicating in order to compensate for learning losses linked to the lockdown. In particular, the pandemic has further exacerbated inequalities in access to high quality education and training, making quality investment and policy action ever more pertinent. High quality public investment in education and training – that is efficient and effective regarding the quantity, quality and inclusiveness of outcomes – is key. Action in four main policy areas can enhance people’s competences efficiently and effectively: (i) ensuring quality and equal opportunities in education and training; (ii) fostering competences for the future; (iii) exploring ways of financing education and training – also through synergies with EU funds; and (iv) fostering synergies with complementary structural policies.

Suggested Citation

  • Anna Thum-Thysen & Rossella Cravetto & Jan Varchola, 2021. "Investing in People’s Competences A Cornerstone for Growth and Wellbeing in the EU," European Economy - Discussion Papers 139, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:dispap:139
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • I2 - Health, Education, and Welfare - - Education
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • I26 - Health, Education, and Welfare - - Education - - - Returns to Education
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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