2025-09-19
indicators

A new Eurostat report on European living conditions reveals persistent divides in income distribution, material deprivation, and life satisfaction across the EU, even as overall median incomes have risen. The 2025 edition of Key Figures on European Living Conditions shows that median disposable income in the EU stood at €21,253 PPS per inhabitant in 2024, with wide disparities between member states. Luxembourg reported the highest median income at €37,781 PPS, while Slovakia, Hungary, and Greece had levels close to €12,000 PPS. At the same time, income inequality, measured by the Gini coefficient, remained uneven. The EU average was 29.3 percent in 2024, but disparities ranged from below 25 percent in Slovakia, Czechia, and Slovenia—among the most equal societies—to 38.4 percent in Bulgaria and 35.3 percent in Lithuania, highlighting sharper divides in parts of Eastern Europe. The share of people at risk of poverty or social exclusion remains stubbornly high. In 2024, 21.4 percent of EU residents in cities and 21.3 percent in rural areas were affected, with only a slight improvement compared to previous years. Romania and Bulgaria showed the widest urban-rural gaps, with poverty risk 27 and 19 percentage points higher in rural areas than in cities. Educational attainment plays a major role. More than a third of adults with low education levels were at risk of poverty, compared to just over 10 percent among university graduates. Unemployment amplified the vulnerability, with two-thirds of unemployed people at risk. According to the OECD, these disparities mirror broader global patterns where rural and low-educated populations remain more vulnerable despite overall income growth. Severe material and social deprivation fell slightly to 6.4 percent of the EU population in 2024, but children were disproportionately affected, with 7.9 percent deprived compared to 5.1 percent of older people. Rates were highest in Romania at 17.2 percent, Bulgaria at 16.6 percent, and Greece at 14.0 percent, while Slovenia reported the lowest at just 1.8 percent. Child-specific deprivation remains a critical issue. One in three children in Romania and Greece lacked basic items such as daily fruit, proper shoes, or internet access. UNICEF has warned that persistent child deprivation undermines long-term social cohesion and economic productivity. Despite these pressures, average life satisfaction across the EU was rated 7.2 out of 10 in 2024. Finland, Romania, and Slovenia reported the highest levels at 7.7 or above, while Bulgaria scored the lowest at 6.2. Trust in others, a key measure of social cohesion, averaged 5.8 across the EU. It was notably higher in Romania, Finland, and Poland at 7.0 or more but lowest in France, Greece, and Cyprus, which all scored below 5. The World Bank has previously linked trust levels to economic resilience, noting that countries with higher interpersonal trust tend to recover faster from economic shocks. The report also highlights ongoing challenges for people with disabilities. Across the EU, 9.7 percent of employed people with disabilities were at risk of poverty, compared to 8 percent of those without. Meanwhile, self-perceived discrimination remains widespread: nearly 15 percent of non-EU citizens living in the EU reported severe material and social deprivation, more than double the EU average. The findings present a mixed picture. While Europe has seen rising real incomes—Romania’s median income, for instance, has surged by 162 percent since 2010—deep divides persist between and within countries. Analysts say these figures should serve as a warning. Income growth is not enough if large sections of the population, especially children and rural communities, remain excluded. The European Anti-Poverty Network has stressed that the EU must now prioritise inclusive growth policies, combining income support with access to services and education. Source: EUROSTAT Image: EUROSTAT