Living standards and quality of life in the EU: challenges of “new” reality

Abstract

Over the past few years, the European economy and the social and labor sphere have been caught in the crossfire of rising energy and commodity prices, a shortage of skilled labor, and the increasing difficulty for many businesses and citizens to pay their bills amid falling real household incomes and the competitive advantages of goods and services production. The anti-Russian sanctions have put many European households on the brink of insolvency. At the same time, problems associated with the demographic transition, the transformation of industrial production and employment due to the digitalization of all kinds of activities, and changes in social standards have not disappeared. The consequences of the negative impact of the COVID-19 pandemic on the labor market, the level and quality of life of the population in a situation of uneven recovery of the European and world economy by regions, industries and forms of economic activity have not been fully overcome. The article analyses the state and prospects of the financial situation of European households against the background of a significant slowdown in economic growth, unprecedented inflation in the region and the efforts of the authorities to solve a complicated problem of overcoming the cost-of-living crisis in the EU.