DIA | Distributional Impact Assessment

Across the European Union, poverty, social exclusion and inequality remain persistent, while economic, demographic, digital and environmental transitions can affect households and social groups very differently. Distributional effects are therefore increasingly important for credible and inclusive policymaking. Yet the use and public reporting of Distributional Impact Assessments varies substantially across Member States, and broader social checks are not applied consistently, leaving gaps in understanding how fiscal, regulatory and social policies affect income groups, vulnerable populations, territories and well-being. More systematic evidence is needed to compare national approaches, identify where assessment practices are strong or weak, and understand how social and distributional considerations can be embedded throughout policy and budgetary processes.

The project

The project is a 12-month study for the European Commission’s Directorate-General for Employment, Social Affairs and Inclusion (DG EMPL), under tender EC-EMPL/2025/OP/0009 (VT/2025/016). It will map Distributional Impact Assessment (DIA) practices across all 27 EU Member States, assess their use in Draft Budgetary Plans from 2015 to 2026 and in the new Economic Governance Framework, identify best practices, formulate recommendations for EU support, and examine wider social checks. The methodology combines documentary and literature reviews, AI-assisted text analysis with expert validation, and semi-structured interviews with national authorities.

The consortium is led by CSIL and includes FBK-IRVAPP and the European Centre for Social Welfare Policy and Research, with the Economic and Social Research Institute (ESRI) and the Centre for Economic Analysis (CenEA) contributing as subcontractors. Within the consortium, FBK-IRVAPP leads Task 2, focusing on the use of DIA in budgetary planning and its integration into the new EU Economic Governance Framework.