Economic inequalities and their impact on democracy

Opened

Programme Category

EU Competitive Programmes

Programme Name

Horizon Europe (2021-2027)

Programme Description

Horizon Europe is the European Union (EU) funding programme for the period 2021 – 2027, which targets the sectors of research and innovation. The programme’s budget is around € 95.5 billion, of which € 5.4 billion is from NextGenerationEU to stimulate recovery and strengthen the EU’s resilience in the future, and € 4.5 billion is additional aid.

Programme Details

Identifier Code

HORIZON-CL2-2025-01-DEMOCRACY-08

Call

Economic inequalities and their impact on democracy

Summary

 Economic inequalities, including inequalities in wealth and income (e.g. in the form of money, financial assets or property), are a major challenge for democratic societies.

In recent decades, while inequality between countries has generally declined, inequality within countries has increased in many countries, as global economic growth has not been evenly distributed.

This growing disparity in wealth has exacerbated political polarisation and fuelled distrust of democratic institutions around the world. These trends not only suggest correlations between these phenomena, but also threaten basic democratic principles such as social justice, inclusion and equal participation and representation.

Detailed Call Description

For instance, extremist parties often gain traction when governments fail to protect those disadvantaged by economic changes. Research indicates that governmental shortcomings in protecting those marginalised by structural economic shifts (e.g., cuts to social security entitlements, public investment and/or tax increase) fuel the roots of populism. Understanding this cycle and the complex relationship between economic inequality and democracy is key for a functioning democratic society. Proposals are encouraged to look at the efficiency and effectiveness of public policies in addressing inequalities. For instance, examining the gap between the design and implementation phases of policies aimed at reducing economic inequalities can help better understand their impact on democracy.

Historically, economic disparities have sometimes revitalised public participation and political engagement in various forms, such as trade unions, civic involvement, and political parties. This contrasts with contemporary trends where economic inequalities often correlate with disinterest or even rejection of democracy. Hence, there is a pressing need for SSH research to delve into why, how, and to what extent economic inequalities can undermine trust in democracy and broader societal structures, and how to counteract these trends. Proposals should consider diverse territorial contexts, moving beyond urban/rural dichotomies, and explore strategies to bolster democracies in these different contexts.

Moreover, research has shown that economic inequalities, when assessed solely through economic indicators, fail to provide a comprehensive understanding of their impact on democracy. Citizens’ perceptions of economic inequalities appear to play a central role in shaping attitudes towards democratic processes and institutions. These perceptions are often exacerbated by dichotomies such as rich/poor, rural/urban, employed/unemployed, educated/uneducated, and native/immigrant. There is a lack of comparative work including citizens’ perceptions, particularly through an intersectional and intergenerational lens. Therefore, research proposals should consider perceived inequalities as an integral part of the research framework.

Key research questions revolve around the intersection and impact of income and wealth inequalities on democratic practices. This involves exploring, for instance:

  • How do income and wealth inequalities across different geographic and territorial areas influence policy preferences of different social and age groups, notably political polarisation, voter turnout, and trust in democratic institutions and processes.
  • How perceived economic inequalities (in contrast to economic inequalities measured by quantitative indicators) influence trust and participation in democratic processes.
  • How do economic inequalities intersect with social class, racial or ethnic origin, religion or belief, sex, gender, age, disability, and citizenship/nationality in different geographic areas, and what is the cumulative impact on democratic practices.
  • What role do local media and community networks play in shaping perceptions of economic inequality across different regions, and how do these perceptions impact democratic engagement.
  • How does geographic mobility (e.g., inter-city, rural-to-urban or vice-versa, national, international, temporary, permanent) influence the transmission of economic inequalities, and how do these processes affect participation and trust in democratic institutions.
  • What strategies could address varying levels of civic engagement among people and communities from different income brackets and levels of wealth.

The funded research should also generate knowledge on intergenerational transfers, that is, inheritances and inter-vivos gifts, (perceived) inequalities, and their impact on democracy: how do these intergenerational transfers influence wealth inequality, and thus, in line with the main subject of this call, how do they impact democracy, for instance in terms of participation or trust in institutions?

When exploring economic inequalities, proposals should consider at least three additional intersecting dimensions of inequalities alongside economic ones, such as sex, gender, disability, social class, religion or belief, age, and racial or ethnic origins. For example, recent research across all EU Member States reveals that young men residing in regions marked by rising unemployment and perceived inequities in public institutions are inclined to view democratic principles like gender equality as challenges to their interests. Understanding these dynamics is crucial for addressing how economic inequalities intersect with democratic values and social attitudes.

Proposals are encouraged to involve diverse disciplinary perspectives, including but not limited to economics, political economy, political science, public administration, history, (political) sociology, (social) psychology, gender studies, and public policy. Approaches that combine social science theories with data science techniques or incorporate novel mixed methodologies are encouraged.

Proposals should involve a diverse array of stakeholders across diverse demographic groups – encompassing different age groups, genders, minority communities, persons with disabilities, and socio-economically disadvantaged populations, including representatives from trade unions, civil society organisations, social welfare bodies, and (local) government representatives.

Call Total Budget

€10.50 million

Financing percentage by EU or other bodies / Level of Subsidy or Loan

100%

Expected EU contribution per project: between €3.00 and €3.50 million

Thematic Categories

  • Culture
  • Education and training
  • Regional Development
  • Research, Technological Development and Innovation

Eligibility for Participation

  • Associations
  • Central Government
  • Educational Institutions
  • Legal Entities
  • Natual person / Citizen / Individual
  • NGOs
  • Non Profit Organisations
  • Other Beneficiaries
  • Private Bodies
  • Researchers/Research Centers/Institutions
  • Services Providers
  • Small and Medium Enterprises (SMEs)
  • State-owned Enterprises

Eligibility For Participation Notes

A number of non-EU/non-Associated Countries that are not automatically eligible for funding have made specific provisions for making funding available for their participants in Horizon Europe projects.

Call Opening Date

15/05/2025

Call Closing Date

16/09/2025

National Contact Point(s)

Research and Innovation Foundation
29a Andrea Michalakopoulou, 1075 Nicosia,
P.B. 23422, 1683 Nicosia
Telephone: +357 22205000
Fax: +357 22205001
Email: support@research.org.cy
Websitehttps://www.research.org.cy/en/

Persons to Contact:

Mr. George Christou
Scientific Officer
Email: gchristou@research.org.cy