Author: Antonia-Laura Pup

Trapped between the great power rivalry of Washington and Beijing, the European Union is looking to chart a new way forward for economic growth. In a recently launched report reflecting the state and directions for EU competitiveness, written by the former Italian Prime-Minister Mario Draghi, this imperative is portrayed as existential for a secure and prosperous European Union, one that preserves its fundamental values, security, and social model. 

Gender and Competitiveness: 

In Draghi’s in-depth report, we can find seven mentions of “women” and only six mentions of “gender.” This comprehensive analysis provides relevant details on how a gender equality perspective could make the framework for ensuring EU competitiveness more robust.

The Draghi report notes that there are still systemic conditions that act as burdens for the participation of women in the labor market, such as “a lack of affordable, accessible, and available childcare,” coupled with lower salaries than men (p. 266). Consistent investment in qualitative childcare and early education are pre-conditions for removing these burdens and creating a “Union of Skills.” Financial assistance for families, such as vouchers for childcare, tax exemptions, and EU-financed childcare plans for companies are also proposed in the report. 

Discussing the pool of untapped talent in the European Union, Draghi mentions again the burdens that have ameliorated the participation of women in the economy. He notes, “the employment rate for women is still some 10 percentage points lower than that for men” (p. 263). According to this analysis, the unequal distribution of domestic responsibilities is another factor that primarily contributes to these disparities. This gender employment gap increases with time, and is even higher for women aged 55-64. 

In terms of technology, Draghi’s in-depth analysis highlights that, although the number of STEM graduates in the European Union has increased over time, the pace is still too slow, and the socio-economic background of candidates remains a factor holding back supply. With twice as many male STEM graduates as women, and four times more men than women working in the information and communication technology (ICT) sector, the gender disparities in the field are far from resolved (p. 263). From the figure included in the report, we can also note how wide the gender gap is in the information and communication technologies sector compared to other fields, such as education and health. A lack of diversity is also affecting the transport sector, where the European Union lacks a sufficiently trained workforce, and women represent only 22% of the employees in the field (p. 217). 

Recommendations:

Here are some complementary policy directions that EU institutions and Member States should explore for a resilient, competitive economy in which women’s potential is not only highlighted, but also accelerated: 

• Empowering young women to pursue STEM careers by offering funds for scholarships, organizing mentoring communities, grants for research projects with more flexible rules and providing substantial European funding to scale up existing businesses. 
• Tax deductions for companies that create labs for new technologies that include women researchers should be explored by Member States, as well as creating more robust frameworks for public-private partnerships in emerging areas of the economy. 
• Putting educational equity at the heart of the new Cohesion policy and allowing additional funds for developing educational infrastructure in disadvantaged communities across the European Union, including supporting services. The Draghi report is very clear in the sense that Member States “still need to make progress in early childhood education” (p. 263). Novel instruments, such as the European Child Guarantee, should be implemented with priority by the Member States, with a focus on assuring that quality education is available for every child, healthcare is available, and at least one healthy school meal a day is provided. Not only will that contribute to better social mobility, but it will also empower more women to achieve balance in their professional-personal lives. 
• Working with the business confederations for addressing the problem of gender disparities more thoroughly, including by facilitating discussions between different confederations in the EU for sharing best practices on how gender equality can be achieved at the grassroots level. In addition to that, both the EU institutions, the governments and social partners should work together to assure that skills gaps are addressed, and women coming from disadvantaged backgrounds have access to qualitative professional career-building opportunities that develop competencies, allowing beneficiaries to thrive in sectors such as the ICT and clean tech. 
• Last but not least, the European Union should implement mechanisms to include female economic leaders more consistently in the enlargement process, providing funds to empower women to open new businesses in accession countries such as Moldova, Ukraine, and the Western Balkans; and encouraging reforms for equitable treatment in the jobs market. A consistent gender-equality component should be a core element of the enlargement process, and more mentorship opportunities for women in wider Europe should be fostered. Work permits and competitive scholarships for talented women working in critical industries should be piloted in these accession countries. Not only will this improve economic transfers and guarantee competitiveness in the long run, but it will also contribute to the EU’s leadership in the international arena.  

Gender equality is a core value of the EU’s social model, and investing wisely for achieving this target will have a consistent impact in assuring European competitiveness. Failure to do so will not only be seen as an abdication from the EU’s moral imperatives, but it will also translate into economic and social costs that will halt the progress of the European Union in an increasingly unpredictable international environment. 

Author: Antonia-Laura Pup, Finalist of the Empowering Young Women Experts in Regional Security and Foreign Policy Fellowship

Antonia-Laura Pup is a Romanian Fulbright Student in the field of Security Studies at Walsh School of Foreign Service, Georgetown University, working as a teaching assistant at the Department for science, technology and international affairs (STIA). She is also completing her studies with a master’s degree in International Security at Sciences Po, where she is researching China’s geoeconomic influence in the Black Sea region. Antonia-Laura has been the policy advisor of the President of the Defense Committee in the Romanian Chamber of Deputies.