Despite high overall standards of living, several regions within the European Union (EU) face persistent socio-economic difficulties, according to the 2024 edition of the report on living conditions in Europe. This reveals that the common perception of uniform prosperity flies in the face of reality as 95 million people are at risk of poverty while over 45% of households face difficulty in making ends meet.
Income and inequality
Income disparities within the EU are significant. The Gini coefficient for income inequality stood at 29.6% in 2023, indicating moderate inequality. However, the disparities are stark between member states. For instance, Bulgaria and Lithuania have the highest levels of inequality, with Gini coefficients that exceed 35%, while for Slovakia, Slovenia, Belgium, and Czechia the levels are much lower, with coefficients below 25%.
The 2024 report further highlights the income landscape revealing that in 2023, the median annual disposable income was 19,955 purchasing power standards per inhabitant across the EU. Austria and Luxembourg reported the highest income levels, while Slovakia, Hungary, Romania, and Bulgaria had the lowest. The income gap is significant in Bulgaria and Lithuania, whereas Slovakia, Slovenia, Belgium, and Czechia enjoy more equitable distributions.
Source: Key figures on European living conditions, 2024.
Poverty and social exclusion
A substantial portion of the EU population is at risk of poverty or social exclusion. In 2023, approximately 21.4% of EU citizens, or nearly 95 million individuals, faced this risk. This figure includes those below the poverty threshold, those experiencing severe material deprivation, and those in low work-intensity households. Romania, Bulgaria, and Greece exhibit particularly high percentages of individuals at risk, especially in rural areas where there are limited job opportunities and services.
Source: Key figures on European living conditions, 2024.
Material deprivation
Material deprivation is another serious issue. In 2023, 6.8% of EU citizens reported severe material deprivation, with rates nearing 20% in Romania and Bulgaria. This deprivation includes being unable to afford essential items such as keeping a home warm or having a week-long holiday. Deprivation rates are notably high among children, with 8.4% of those under 18 affected, indicating greater vulnerability among younger populations.
Financial challenges are widespread, with 45.4% of households reporting difficulties in making ends meet, particularly in Bulgaria and Greece. In 2023, 28.5% of EU citizens could not afford an annual holiday, and 9.5% struggled to afford a protein-based meal every other day, reflecting acute economic strain.
Source: Key figures on European living conditions, 2024.
Employment, work intensity, and youth dependency
Employment quality varies significantly across the EU. About 8.1% of people under 65 live in households with very low work intensity. Regions in Belgium, Spain, France, and Italy report the highest percentages, with rates exceeding 16%, mostly due to the situation in their extraterritorial regions. Moreover, nearly 50% of young adults (aged 18–34) are financially dependent on their parents, particularly in Croatia and other regions with limited job opportunities.
Source: Key figures on European living conditions, 2024.
Health, disability, and kife satisfaction
Although the EU generally benefits from high healthcare standards, disparities in access persist. In 2023, 67.9% of citizens aged 16 or older perceived their health to be good or very good, but perceptions vary by country. For example, only 47.6% of people in Latvia and Lithuania described their health condition as very good or good, with the percentage hiking to almost 80% in Malta and Ireland. Life satisfaction also varies, with high scores in Finland (7.8) and lower scores in Bulgaria (5.8). Life satisfaction correlates closely with education and financial stability.
Source: Key figures on European living conditions, 2024.
Subjective poverty
Subjective poverty, or an individual’s perception of their financial well-being, affects 24.1% of the EU population, with a higher prevalence among women and those with lower educational attainment. This subjective measure highlights the psychological and emotional impacts of economic strain. In Greece, 67% of individuals feel poor, reflecting the long-term economic instability there, while in the Netherlands, only about 7% perceive themselves to be poor.
Overall, the 2023 report on living conditions in the EU presents a comprehensive view of the socio-economic landscape, revealing significant disparities and challenges. Addressing these issues requires targeted policies to reduce income inequality, mitigate poverty, alleviate material deprivation, and improve employment quality and life satisfaction across the member states.
