The twin transition demands a robust policy infrastructure. Central to this infrastructure is the development and availability of appropriate human capital. EU institutions have been actively working to ensure that Europe can provide the skills required for the twin transition, promoting various initiatives aimed at integrating European education and training systems. However, these efforts have been constrained by the EU's limited role in education and training policies, as the treaties primarily assign the EU a supportive role rather than allowing it to replace national policies. EU action has faced particular challenges in the realm of vocational education and training (VET), where national stakeholders have often resisted 'Europeanisation' efforts, defending national VET systems. This working paper suggests that these limitations can be transformed into advantages. We argue that the inherent treaty-based constraints on establishing a 'European' education and training system present an opportunity for EU policymakers to adopt a more place-based approach, which would not only be more effective within the institutional limits but also it would better address skill needs at the local level. Our analysis reveals significant cross-country heterogeneity in the demand for green and digital skills. Therefore, EU initiatives should prioritize supporting Member States in meeting the specific skill needs of their national and regional labour markets. In VET, this entails shifting focus from creating a unified European VET system to: (a) further supporting successful initiatives within national VET models, and (b) facilitating the recognition of VET qualifications and enhancing the mobility of VET workers within Europe, even when qualifications are awarded by different national systems. In higher education, this approach involves targeted expansion, aligned with the dominant sectoral specializations of Member States. For example, expanding STEM skills in countries leading in green technology production represents a more effective strategy in higher education policy.

Read the document