Template-Type: ReDIF-Article 1.0

Author-Name: Csaba Zalai
Author-Workplace-Name: Ludovika University of Public Service
Author-Email: Zalai.Csaba@uni-nke.hu
Author-Person:

Title: Demographic Changes and Human Capital Retention: Rethinking EU Cohesion Policy

Abstract: The paper examines the macroeconomic and regional implications of the EU's
demographic transition, with a particular focus on the role of the free movement of
labour. It highlights that demographic disparities, exacerbated by population decline
and emigration, will weaken the EU's competitiveness and fiscal sustainability in the
medium term, while the sustained outflow of human capital will deepen regional
inequalities and undermine prospects for economic convergence. The paper argues
that the systemic integration of demographic considerations into cohesion policy is
key to the EU's long-term economic stability and competitiveness. The 2028-2034
Multiannual Financial Framework provides an opportunity to strengthen policy
instruments that support human capital retention and mitigate brain drain. In this
regard, the concept of "freedom to stay", proposed by Enrico Letta, could provide
a new policy framework.

Classification-JEL: F15, J11, J18, J61, O52, R19
Keywords: demographic change, EU Multiannual Financial Framework (MFF), cohesion policy, workforce mobility, territorial effects of the Single Market
Pages: 41-64
Volume: 25
Issue: 2
Year: 2026
File-URL: https://hitelintezetiszemle.mnb.hu/sw/static/file/fer-25-2-ove2-zalai.pdf
File-Format: Application/pdf
Handle: RePEc:mnb:finrev:v:25:y:2026:i:2:p:41-64