The latest GovTech4All Café on November 21, 2024, served as an inspiring meeting point to explore the intersection of technology, public policy, and societal impact. This time, the spotlight was on EUROMOD, the EU’s sophisticated microsimulation model for taxes and benefits. Led by the Joint Research Centre (JRC) of the European Commission, the session delved into how this tool is used, its transformative potential, and its future role within the GovTech ecosystem.

What is EUROMOD—and Why Does it Matter?

EUROMOD is fundamentally about making the complexity of Europe’s tax and benefit systems more understandable and accessible. It simulates the effects of changes in tax and benefit systems on households across all 27 EU member states. The model measures outcomes such as income distribution, poverty rates, and budget impacts, providing invaluable insights into policy reforms.

With roots in academic research at the University of Cambridge in the 1990s, and later on the University of Essex, EUROMOD has evolved into an essential tool for EU institutions, national governments, and researchers. Now fully managed by the European Commission, it is actively used for policy evaluations, academic studies, and educational purposes.

Key Insights from the Presentation

During the presentation by Fidel Picos and his colleagues from the JRC, several exciting aspects of EUROMOD were highlighted:

• A digital calculator for taxes and benefits: Fidel described EUROMOD as an advanced calculator capable of navigating the complexities of tax and benefit systems across 27 countries. It enables analysis of current systems as well as reforms, focusing on income distribution and budgetary impacts.
• Data and transparency: Built on data from EU-SILC (European Union Statistics on Income and Living Conditions), EUROMOD is an entirely open-source project. Its code is available for download, allowing researchers and governments to adapt and extend the model.
• Hypothetical households and customized simulations: EUROMOD includes an innovative feature for creating hypothetical households, enabling users to simulate the effects of specific policies on individual cases or household types. This feature aligns closely with projects like GovTech4All, which aim to empower citizens with insights into their tax and benefit entitlements.

Discussions: From Policy Tool to Citizen Engagement

The session also sparked valuable discussions on how EUROMOD could evolve and integrate into GovTech initiatives. A standout idea was the development of a user-friendly portal where citizens could input their personal details and receive tailored projections of taxes and benefits.

Three central themes emerged:

1. Expanding functionality: Participants, including those from Greece, expressed interest in extending EUROMOD to incorporate additional regional policies, such as local taxes and specific benefits. The potential of AI to automate policy updates and data integration was also explored.
2. Comparing projections with reality: Another key topic was using EUROMOD to compare projected and actual policy impacts. This would improve the evaluation of reforms’ effectiveness and help refine future simulations.
3. Citizen empowerment through GovTech: GovTech4All partners saw clear potential for integrating EUROMOD into national platforms to enhance transparency and engage citizens on their rights and responsibilities.

Next Steps: Connecting EUROMOD to GovTech4All

EUROMOD’s potential to strengthen digital transformation in public services is immense. Its ability to simulate both existing and hypothetical systems makes it a natural fit for GovTech initiatives, particularly those aimed at building citizen-friendly solutions.

The participants were encouraged to continue the collaboration and to participate in the upcoming Rule as Code conference in Paris, March 2025, where further discussions on EUROMOD’s role in GovTech will take place.

Final Reflection

GovTech4All Café once again underscored the importance of collaboration between technology, policy, and public engagement. By bringing together experts developing tools like EUROMOD with innovators in GovTech, we can build a foundation for more inclusive and effective public services.

Let’s continue these conversations and drive progress—toward a more equitable and transparent Europe.

 

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This blog post summarizes the key takeaways from our latest GovTech4All Café session, spotlighting EUROMOD as a powerful tool to enhance transparency and equity in public policy. By leveraging technology to simplify complexity, we can build systems that not only address current challenges but also empower citizens and governments to shape a more inclusive and data-driven future.