ABSTRACT
The fourth chapter of monograph presents guidelines for reducing excessive inequality in the EU based on results of the study, which have confirmed the existence of excessive inequality in EU countries having a negative impact on their economic growth, quality of life, and sustainability. The negative effects of excessive inequality on socio-economic progress can be avoided through integrated systemic solutions to reduce the level of economic inequality. Empirical evidence confirms that for the EU-28, economic inequality should not exceed 29–30%, measured by the Gini disposable income ratio, in order to avoid the negative effects of excessive inequality on their socio-economic progress. In order to reduce economic inequality, social welfare states generally use the main ways to reduce economic inequality – reforming the tax system and developing the social security system (social benefits policy), which are the most effective in redistributing market income.
