Assessment of sustainable development in the EU 27 using aggregated SD index

In the European Union the sustainable development is a fundamental and overarchingobjective enshrined in the Treaty and measuring progress towards sustainable development is an integral part of the EU Sustainable Development Strategy. Eurostat produce a monitoring report every two years based on the EU set of sustainable development indicators (SDIs). The main objective of this paper is to create an aggregated index of the sustainable development from EU set of SDIs for each 27 EU country based on the PCA. The headline indicator economic growth was not involved because its increase is not expressly followed by positive change in other SDIs from social, economic and environmental fields. The aggregated SD index enables to get an overall picture about the position of each of the 27 EU countries and its development in terms of the sustainability over time as assumed in the EU Sustainable Development Strategy. Sweden, Denmark, Netherland, and Great Britain have repeatedly reached the highest value of aggregated SD index. The highest positive change in the aggregated SD index has occurred in countries with the lowest value of aggregated SD index. Moreover, we put this new aggregated index in relation with economic growth and found that there is a negative correlation between aggregated SD index and the economic growth for most of the 27 EU countries. (C) 2014 Elsevier Ltd. All rights reserved.