Rethinking the social contract: Solidarity and innovation go hand in hand
24 September 2025
| Journal article
Overview
Europe’s post-World War II social contract, based on solidarity, social justice, and redistributive welfare, is under existential threat. With rising defence and climate costs, ageing populations, and AI-driven labour automation, traditional tax-based funding for social systems is eroding. This article asserts that a paradigm shift is needed to ensure fairer taxation and to balance innovation with human dignity. AI will transform societies, but may also devalue human labour, deepening inequality and creating instability. Without political action to renew the social contract, Europe risks undermining its democratic values and social cohesion.
WHO Team
European Observatory on Health Systems and Policies
Editors
Clemens Martin Auer
Copyright
CC BY-NC-SA 3.0 IGO