Geopolitics Review - 7th July 2025

Technology, Infrastructure, Labour and Innovation In The EU

Dylan Muggleton

Jul 07, 2025

Contents

Introduction
Education In The EU
Labour In The EU
Infrastructure In The EU
Energy In The EU
Health In The EU
Shelter and Housing In The EU
Concluding Remarks

Bitesize Edition

In continuing my deeper dive into Europe, today, we cover aspects such as education, infrastructure, and housing. There are obvious differences between Europe and the rest of the world in these categories. But also within the EU, there are some notable points worth deeper exploration.
Within the European Union, the differences can be categorised by geography. For example, Northern Europe differs from Eastern, Southern, and Western Europe in each of the categories we’ll explore today.
As we look to the future, the European Union is sitting behind the United States and China in many different fields that will determine the direction of our future world order. Especially in technology, where innovation is growing at an exponential rate in developed nations, if Europe is to keep up, it needs to be at the forefront of innovation. This innovation will come in such sectors and industries that we’ll explore today.
This technological change could then drive larger societal change. But before exploring technological change and societal change on Thursday, we need the background information, and that’s what we’ll discuss today.

Introduction

In exploring Europe on a deeper level, I’ll delve into education, infrastructure, energy, health, and shelter today. Let’s dive in.

Education In The EU

Education systems can vary between the EU and other countries around the world. However, there are also some notable differences between EU countries. First, I’ll delve into the EU vs non-EU education system comparison:

Governance and Standards - EU countries participate in the European Education Area and follow the Bologna Process. This ensures that comparable degrees, student mobility, and credit can transfer between member states. Many countries also align policies through Eurydice and EU benchmarks. Outside of the EU, some countries experience centralised governance structures, such as Turkey, while others are more decentralised. Naturally, there are fewer cross-border education initiatives outside of the EU.

Organizing the education system: central versus decentral models

Funding and Equity - Public spending on education is around 4-5% of GDP in the EU. Some countries, such as Finland, Sweden, and Germany, offer tuition-free or low-cost university education. Collective EU funding aids poorer members to invest in infrastructure, such as Romania and Bulgaria. Outside the EU, spending strategies vary wildly, and inequality is often seen regarding the quality of education.
Access - Within the EU, there is high enrollment in secondary and degree-level education. The wider push here revolves around inclusion and reducing early school leavers. Outside of the EU, there are once again greater disparities. In rural areas, children can often help work, especially in the agricultural industry. Reducing the early leavers in such environments will be a function of improved infrastructure, quality education, the rise of services, and education funding. Schemes such as Erasmus help boost education participation in some countries in the EU, especially Spain and Germany.
Vocational vs Academics - In the EU, some countries use dual systems that blend vocational training with apprenticeships to learn practical skills. There has been a recent push to modernise vocational education and training systems across the EU. After all, we need workers in key industries such as energy and construction. This is especially true in the nuclear industry, where the buildout in the 20th century has seen these experts retire without much transfer of knowledge. The latest efforts are seeking to address this issue across a wide range of industries. Some nations outside the EU remain heavily focused on an academic education, and in such vocational industries, they risk lagging in knowledge transfer.

two men in safety gear sitting on a pile of pipes — Photo by Tinky 天奇 on Unsplash

Digitalisation of Education - The EU “Digital Education Action Plan” promotes electronic learning, digital skills, and artificial intelligence as tools to facilitate learning. There also remains a strong emphasis on maintaining learning after formal education ends through workplace courses and general skills expansion. Outside of the EU, digitalisation varies dramatically. Firstly, the technology has to be available, which some countries around the world have less access to. Also, connectivity and teacher training are lacking in some nations, and digitalisation suffers as a result.

The differences within the European Union are still based on geography. Typically, Western and Northern Europe see high investment per student in strong public education systems. There is a wide array of vocational and academic pathways available, literacy percentages are strong, and digital infrastructure is advanced.

However, as we move into Southern Europe, public education is still free, but is often funded less. This can be seen in higher youth unemployment, which leads to a mismatch between education and labour. This is a trend we are seeing emerge in other places outside of Europe, especially in China.

As for Eastern Europe, the legacy of Soviet-era education systems remains. Reform is still ongoing, but strong basic education is available in many countries. It’s when we look at more rural environments that access to education becomes less. There are teacher shortages, and some curricula can be outdated. It’s here where youth unemployment is also typically higher. Also, Eastern Europe generally suffers more from brain drain as skilled learners will leave their country of education for better job prospects. Within Europe, this would take them North or West. The largest net loss migration states within the EU are Poland, Greece, Czechia, Romania, and Slovakia, as of 2024 data.

With some countries experiencing a disconnect between education and labour, how does this present itself in European labour markets?

man grabbing a green grass wearing pair of red garden gloves — Photo by Nel Ranoko on Unsplash

Labour In The EU

Labour within the EU is well-known for its freedom of movement, as ensured by the European Labour Authority. This helps to enable cross-border jobs, but as I discussed in the education section, it contributes to brain drain from the Eastern EU and also leads to labour gaps in the Western EU in cheaper labour jobs. An ageing workforce in Europe also contributes to these labour gaps further. Europe, on average, is the least repressive region for workers, but it has started a steady deterioration in the last four years. The rise of the far-right in many European nations in the last few years also threatens the migration of workers and their rights in the EU.

As for other differences between EU and non-EU member states:

Non-EU labour is more constrained by visa regimes in comparison to Europe, and many nearby non-EU nations send a high number of temporary workers to the European Union.
EU workers in general have strong protections, such as minimum wage, parental leave, anti-discrimination laws, and safe working conditions in comparison to the rest of the world. This is because all EU countries follow the European Pillar of Social Rights principles. Also, as the Global Rights Index presents, this protection can differ from nation to nation in Europe. For example, Germany has a rating of 1, relating to sporadic violations of rights. However, Hungary has a rating of 4, indicating systematic violations of rights. Despite these individual data points, the trend here is that countries are getting worse, not better, when it comes to workers’ rights. Outside of the EU, labour protections vary just as much as within the EU.
The level of unions within EU nations differs. Some, such as Sweden and Belgium, maintain a high density of unions, while others, such as Hungary, are seeing a decline.
Wages are significantly higher in Western and Northern EU countries, but the EU coordinates a “Minimum Wage Directive” to push for fair pay. Still, wage gaps remain between the North-West and the South-East. The nations surrounding the EU typically have lower wage levels, but some nations, such as the UK and Switzerland, buck the trend. Due to informal labour and weaker labour law enforcement, wage inequality can be extreme in some non-EU economies.

Big Ben, London — Photo by Marcin Nowak on Unsplash

In the EU, labour participation is generally high, but gender pay gaps do persist. There is an increasing focus on youth unemployment, elderly participation, and the inclusion of skilled migrants. However, some countries struggle more with youth unemployment than others, such as Spain, where youth unemployment is over 25% (May 2025). Outside of the EU, this youth unemployment can rise further, with some countries close to the EU exceeding 25% (Bosnia and Herzegovina, North Macedonia). Outside of the EU, some regions experience incredibly low female participation in labour markets, especially in the Middle East and North Africa.

When exploring differences between EU member states, migration is a huge topic of discussion. Nations in Western and Northern Europe typically have more ageing populations. As a result, skilled migration is required to maintain the level of the labour workforce. But, as we’ve seen in the last few years, some nations are worried about cultural clashes, and so, the tightening of border controls has occurred. This is especially notable in Germany, which was the first to begin down this road. But when it comes to demographic issues, migration of skilled labour is one of the best strategies to push the can further down the road without major societal change to how labour functions around the world, such as via the introduction of universal basic income.

In Southern Europe, work in hospitality and agriculture that is informal is much more common, especially boosted by large tourism sectors in Southern Europe. Eastern Europe is also still undergoing a shift from agriculture to services and tech-based labour markets. If these non-EU nations, such as those in the Balkans, hope to one day gain EU membership, labour changes are one such pursuit they will have to undertake.

But in order for labour changes, the infrastructure is often required.

time lapse photo of concrete highway with cars — Photo by Shawn on Unsplash

Infrastructure In The EU

Within the EU, all member states have access to EU structural and cohesion funds, which, especially for poorer member states, can provide a huge boost to infrastructure funding. The European Investment Bank also finances sustainable infrastructure in the region. There are also multi-national coordinated infrastructure projects, such as the TEN-T Network and the Green Deal. The TEN-T Network aims to create nine European Transport Corridors across the continent. It is worth noting that since the financial crisis, investment in infrastructure has been falling.

Other aspects of infrastructure in the EU to note are:

Transport Networks - High-speed rail and modern highway systems connect Western and Northern Europe through major EU cities and logistics hubs. As you move further south and east, developed urban transport infrastructure remains, but rural areas are lagging. Rapid improvements have been seen over the last few decades in Poland and the Czech Republic. In surrounding areas, especially the Balkans, infrastructure is less integrated or poorly maintained. European funds are helping to improve the region, but they remain lagging. Transport infrastructure is a case-by-case analysis for countries outside of the EU.

Digital Infrastructure - 5G, fibre broadband, and smart cities are being pushed for through the Digital Decade 2030 agenda. This is especially contributing to large improvements in rural broadband and digital inclusion pursuits. Outside of the EU, the UK is a leader in 5G rollout, while others, such as the Balkans, lag.

person in black long sleeve shirt using macbook pro — Photo by Towfiqu barbhuiya on Unsplash

Energy Infrastructure - Western Europe has attempted to be a pioneer and a leader in the pursuit of green energy. One bad example of this pursuit has been seen in Germany’s energy industry, which has been left damaged as a result of the flawed Energiewende. Countries have to ensure they possess diversified, adaptable energy industries, and relying solely on weather-dependent renewable sources doesn’t achieve diversification or adaptability. Together, Europe is in a good position through interconnectors, and the ENTSO-E grid ensures strong integration. Cross-border pipelines also ensure fossil fuels have more transport options throughout continental Europe. This is especially beneficial to Germany, which can import energy from France through interconnectors, which has a large nuclear power industry. We seem to be at a point where nations are recognising their mistakes, and the pursuit of baseload power supply being the base of all energy sectors within Europe is underway. This will very likely come through more nuclear power buildout.
Water, Sanitation, and Waste - The EU has strict water quality and waste management standards under EU directives. Especially in urban areas, wastewater management is modernised. Outside of the EU, there is lower quality and access, especially in rural areas. Bottled water is the norm in many regions around the world due to undrinkable tap water, such as the Balkans, Turkey, and Southeast Asia. Waste treatment is also limited in other regions of the world, with dumpsites and poor recycling systems common.

Part of the key infrastructure of any nation is its energy infrastructure. But outside of energy infrastructure, what other aspects of the energy industry are worthy of note when exploring the European Union and those outside of it?

Energy In The EU

Energy is an area where clear differences can be seen within the EU. These differences are as follows:

Energy Prices - High energy prices are seen in Western and Northern Europe, largely due to the flawed ESG and Green movement, leading to large fluctuations in supply. In Southern Europe, they have excellent solar potential, so investment here is best utilising the environment in which they live. However, prices in Southern Europe remain high too. This also ties into energy storage, which, if improved, could ensure solar can provide electricity even at night, according to recent developments. Of course, this is dependent also on supply and demand changes day-to-day. Due to economic concerns, there is some resistance to weather-dependent renewables, and rightly so. Natural gas and crude oil remain a huge part of how our daily lives function, and they will for decades to come. Rejecting them too quickly will lead to reduced energy supply, and as a result, prices will rise. As for Eastern Europe, they are heavily reliant on fossil fuels, such as coal and Russian gas, although with the Ukraine War, this has taken dramatic shifts in the last few years. In fact, at the start of January, Ukraine didn’t renew the EU gas transit agreement with Russia. Some nations will suffer if gas flows are reduced, especially Slovakia and Moldova, as well as Austria. The Eastern transitions to a more diversified, adaptable energy sector have also been hampered by older grids, energy poverty, and affordability issues.

red and white street sign under blue sky during daytime — Photo by Garrett Butler on Unsplash

Energy Security and Dependency - This has been deeply affected by Russia’s invasion of Ukraine and the destruction of the Nord Stream pipeline. Whether by choice as a consequence of the war, or whether by force through infrastructure war deep under the ocean, energy security is becoming a major issue within Europe. The answer was believed to be renewables for Europe to control its own security and reduce dependency. But, weather-dependent energy sources reduce energy security if not supported by baseload sources. Outside of the EU, some nations without domestic production are heavily dependent on natural gas and crude oil giants, such as the United States or members of OPEC+. Being dependent on a single supplier makes them vulnerable to pain. And since energy is life, all efforts should be made to protect the supply. This is also dependent on infrastructure. Clear bottlenecks form outside of the EU, where infrastructure is lacking. On the flip side, some countries act as energy transit hubs, such as Turkey.
Electricity Access and Reliability - Within the EU, there is universal electricity access via reliable electricity grids. EU directives promote grid stability and consumer rights as vital pursuits. Outside of the EU, electricity access can be patchy in underdeveloped regions of the world, but 91% of the global population had access to electricity in 2021. However, in some countries, this access rate was as low as 19%. In areas where the energy sectors aren’t adaptable, blackouts are frequently seen. The urban-rural gap is also significant here, with rural areas contributing 80% of the world’s population without electricity access. A large proportion of these rural areas without access are in Sub-Saharan Africa.
Energy Innovation - Access to EU funding through multiple schemes, including Horizon Europe and the Just Transition Fund, ensures all EU member states benefit in the pursuit of energy innovation. Outside of the EU, other multinational schemes exist, such as World Bank funding and China’s Belt and Road Initiative, but this is often in the form of loans or leaves countries dependent on external support. On a general level, this leads to innovation being limited by capital support and institutional weakness.

Energy is life. Without energy, the world would stop functioning. Another aspect of life that is a necessary aid in our everyday lives is healthcare.

doctor holding red stethoscope — Photo by Online Marketing on Unsplash

Health In The EU

Healthcare systems across the EU and non-EU countries can differ in terms of access, quality, and funding. Recent research separated Europe into clusters: Austria-Germany, Central and Northern Countries, Southern Countries, Eastern Countries A, and Eastern Countries B to separate the health characteristics of different countries in Europe.

The following key differences to note are:

Access - Most EU nations almost guarantee universal healthcare access, whether through national health services, such as in Italy, or via mandatory insurance models, as in Germany or the Netherlands. With a European Health Insurance Card, EU citizens can access healthcare across borders. Outside the EU, some nations possess similar structures to the European Union, such as national health services or insurance models. However, in others, out-of-pocket healthcare payments are common.
Quality - Healthcare in Europe is of high quality, and is regulated by EU cross-border patient rights, medical safety standards, and the European Medicines Agency. In some regions outside of Europe, due to outdated equipment, staff shortages, or corruption, quality can decrease. In regions of war, underinvestment can significantly lower quality further.
Health Outcomes - The EU typically has a high life expectancy, low infant mortality, and great preventative care. However, in areas of lower life expectancy, disease and mortality remain challenges, and survival can be more of a struggle due to a lack of access to necessities and good quality healthcare.
Funding and Spending - Funding comes largely from public spending via taxes or social insurance. In the EU, spending on healthcare ranges from 6% to 12% of GDP. Outside of the EU, there exists a range of funding models, with some seeing less public funding and more private or out-of-pocket spending. In even poorer nations, they are dependent on international aid.

Photo by Claudio Schwarz on Unsplash

Digital Health and Innovation - Europe is making strong progress in e-health systems and telemedicine via the EU4Health programme, which promotes cross-border innovation. Outside of the EU, the UK, through the NHS AI Lab and South Korea, through digital health pursuits, are leading innovators. However, in nations with weak digital infrastructure or a lack of regulation, the adoption of digital strategies is slower and weaker.

A final aspect to compare EU and non-EU member states is shelter and housing.

Shelter and Housing In The EU

Due to variations in affordability, availability, homelessness, and urban planning, key differences can be noted between EU and non-EU nations, but also within the EU. The following points are worth noting:

Affordability and Rent Burden - In major cities in the EU, there is rising pressure on affordability. Rent burdens in many nations have risen above 40% of income. Some countries use rent controls or subsidies, but affordability, whether ownership or renting, is a clear problem. This problem persists in the developed world outside of the EU. Outside of these regions, housing can be cheaper, but quality can be lower and less regulated.
Ownership - Most EU countries in the East have high ownership rates, such as 95.6% in Romania and 93.6% in Slovakia, due to post-Communist privatisation. Northern and Western Europe see more renters. Outside of Europe, the Middle East sees high ownership, while the UK, US, and South Korea see low ownership and high mortgage dependency.
Housing Quality and Infrastructure - In the EU, housing standards, regulations, water, sanitation, and construction regulations are maintained to a high standard. In areas where standards slip, EU funding, such as the Cohesion Funds, can be used to upgrade housing. Outside of the EU, quality remains high in OECD nations. However, in post-conflict or low-income regions, quality declines. Also, regions susceptible to natural disasters, such as Turkey, can see damage from such events.

aerial view of buildings and flying birds — Photo by Anna Berdnik on Unsplash

Homelessness and Social Housing - Due to rising affordability crises, homelessness is on the rise in Western Europe. Social housing pursuits to address these issues vary from nation to nation, with the Netherlands having around 30% of total housing being social housing. But other countries lag behind this significantly. EU policy via FEANTSA targets integrated homelessness solutions, and programmes such as rescEU create emergency shelter reserves for thousands of people. The EU also supports the Global Shelter Cluster. Outside of the EU, some nations have no homelessness strategy at all. Many rely on NGOs or religious institutions to address homelessness.
Urbanisation - In the EU, it is highly urbanised with planned cities. This attempts to encourage smart growth, green housing, and expanded urbanisation within cities. Outside of the EU, urbanisation can be unregulated and can expand with a city as a function of infrastructure buildout. Globally, over 1 billion people live in informal housing without secure tenure or access to necessary services. In some places, slums dominate the housing landscape, such as Lagos, where an estimated 70% of its population lives in slum housing. Again, this is unregulated urban expansion.

All of the characteristics we’ve explored today are important. But we can also explore them collectively. Within Europe, this presents itself as a clear North-South and West-East divide within the EU. As a result, when we zoom out, EU unity and cohesive strategy moving forward depend on managing these levels of internal inequality. But if this isn’t pursued, the EU will remain fractured. If problems such as this persist, this could threaten the success of the European project. All of the aspects discussed above can also be narrowed down to pursuits of innovation. With such wide-ranging pursuits, how can we bring this all together to explore collective innovation within the European Union at a societal level? I’ll discuss this next time.

Concluding Remarks

On Thursday, I’ll explore how these aspects of European policy can contribute to technological change and, consequently, could lead to lasting societal change.

There are also other elements of European policy not yet discussed, such as security, demographics, and politics. Expect these discussions over the coming weeks also.

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