Millions of Europeans live in poverty, but the concept of a comfortable income varies greatly across countries. In 2024, over 72 million people in the EU were classified as "at risk of poverty," accounting for 16.2% of the population.
However, when comparing poverty thresholds in different countries, living on the edge looks completely different.
The "risk of poverty" indicator is the share of people whose median equivalent disposable income is below a certain threshold. This threshold is set at 60% of the national median income.
However, Eurostat notes that this indicator does not measure wealth or actual poverty.
Rather, it reflects low income compared to other residents of the same country, which "does not necessarily mean a low standard of living."
On average across the EU, the annual median equivalent income per person in 2024 was €21,582. 60% of this amount is €12,949, or about €1,079 per month. Anyone with an income below this level is considered at risk of poverty.
However, country data provides a much clearer picture. In the EU, this threshold ranges from €391 in Bulgaria to €2,540 in Luxembourg (€736 in Latvia).
If candidate countries for EU membership and EFTA members with available data are included, it varies from €201 in Turkey to €2,596 in Switzerland. Norway is also among the three countries where the threshold exceeds €2,000.
The poverty risk threshold is between €1,500 and €2,000 in Denmark, Austria, Ireland, the Netherlands, and Belgium (listed from highest to lowest in this group).
This level is below €750 in several countries, including Latvia, Portugal, Croatia, Lithuania, Poland, Greece, and Slovakia. It drops below €500 in Hungary, Romania, Bulgaria, Serbia, and Turkey.
Among the "big four" EU countries, Germany has the highest poverty threshold at €1,381, followed by France (€1,278), Italy (€1,030), and Spain (€965).
For a household consisting of two adults and two children under 14, the poverty risk threshold is 2.1 times higher than that for a single person. It is €2,266 in the EU, €423 in Turkey, and €5,452 in Switzerland.
What Explains the Differences?
Poverty risk thresholds are directly dependent on the median equivalent income in the country. According to Julia De Lazzari, an economist at the International Labour Organization (ILO), differences in labor productivity and industrial structure help explain why these levels vary so widely. Higher labor productivity allows countries to sustain higher wages.
As a result, in countries with large high-cost sectors such as finance, information technology, or advanced manufacturing, wages tend to be higher. This also means that the poverty threshold in these countries is higher.
How Do Poverty Thresholds Compare in Purchasing Power Standards?
When measured in purchasing power standards (PPS), the gap narrows, but differences remain evident. PPS is an artificial currency unit calculated in such a way that one PPS theoretically allows for the purchase of the same amount of goods and services in any country.
In PPS terms for a single adult, the poverty risk thresholds range from 449 in Serbia to 1,889 in Luxembourg.
Turkey, Hungary, Slovakia, and Greece are among the five countries with the lowest figures. The top five include Norway, Switzerland, Austria, and the Netherlands.
Among major economies, the threshold is highest in Germany. It is followed by France, while Spain and Italy are at the level of 1,060.
Where Is the Risk of Poverty Highest?
According to Eurostat, in 2024, 16.2% of the EU population was at risk of poverty. This figure ranges from 9.5% in the Czech Republic to 22.2% in Turkey and North Macedonia.
In candidate countries for EU membership, as well as in Balkan and Eastern European states, the share of the population at risk of poverty is higher. Among major economies, this figure is also high in Spain (19.7%) and Italy (18.9%), while in France (15.9%) and Germany (15.5%) it is slightly below the EU average.
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