Poverty in the EU declined in the last decade, but disparities persist among nations

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Published: 2026-09-30T18:08:02.128Z • Permanent link

Poverty in the European Union declined between 2015 and 2023, according to a study published in PLOS One by Silvia Megyesiova and Cecilia Olexova of the Bratislava University of Economics. This finding is significant, as it suggests that concerted efforts by policymakers and institutions have led to a reduction in poverty rates across the continent. Specifically, the study analyzed data from 27 EU member states and found that the percentage of people living below the poverty line decreased by 1.3 percentage points over the eight-year period.

Researchers Silvia Megyesiova and Cecilia Olexova's study also highlights the disparities that persist among nations. For instance, while poverty rates declined in 12 out of 27 EU countries, they increased in five countries, including Bulgaria, Romania, and Croatia. Furthermore, the study notes that the poverty reduction was largely driven by improvements in income levels, rather than reductions in inequality. Notably, the study's findings are based on data from the European Social Survey (ESS) and the EU's Eurostat, which provide a comprehensive picture of poverty rates across the EU.

The study's authors argue that their findings have important implications for policymakers, who must continue to address the root causes of poverty and inequality. Specifically, they recommend that policymakers focus on improving access to education, healthcare, and employment opportunities, as these are key drivers of poverty reduction. By taking a comprehensive approach to addressing poverty, policymakers can help ensure that the benefits of economic growth are shared more broadly across the EU.

The decline in poverty rates in the EU has significant implications for companies operating in the region. For instance, companies such as IKEA, which has a significant presence in Eastern Europe, may see an increase in demand for their products as more people have disposable income. Conversely, companies that rely heavily on low-skilled labor, such as those in the fast-food industry, may struggle to adapt to changing economic conditions. Research communities, too, will be interested in the study's findings, as they provide valuable insights into the drivers of poverty reduction and the challenges that remain.

The study's findings also have important implications for markets and policy environments. For example, the European Commission's strategy to reduce poverty and inequality by 2025 may be more effective than initially thought, given the decline in poverty rates over the past decade. However, policymakers must also be mindful of the disparities that persist among nations, and take steps to address these disparities through targeted interventions. By doing so, they can help ensure that the benefits of economic growth are shared more broadly across the EU.

The decline in poverty rates in the EU is part of a broader trend towards economic convergence across the continent. Since the end of the European sovereign debt crisis in 2015, the EU has seen a significant increase in economic growth, driven by a combination of factors, including low interest rates, fiscal stimulus, and structural reforms. However, this trend is not uniform across all countries, and some have struggled to adapt to changing economic conditions. For instance, countries such as Greece and Italy have seen significant increases in poverty rates, while others, such as Finland and Sweden, have seen declines.