Human Capital Development as the Central Pillar of Sustainability at EU Level

Given the rapidity of change, our economic and social life has been transforming over the past decade. In this context, we have chosen to analyze in this paper the productive potential of the new generation and its chance for a prosperous life, measured by the Human Capital Index (HCI). After that, we compare the productive potential with the sustainability performance at the European Union level, measured by the Transitions Performance Index (TPI). In general, countries with a high level of HCI also tend to have higher TPI scores, which is explained by the fact that a high level of health, education and income contributes to the efficient implementation of public policies regarding the green economy and the strengthening of the role of institutions in terms of the chance to have a prosperous life. Human capital is essential in developing sustainable policies that consider the diversity of the process, in the context where understanding these mechanisms is essential for managers, practitioners and other decision-makers.