Overview

This report is a benchmark series produced by Eurostat, which serves as the statistical office of the European Union. It presents a detailed selection of statistical data focused on the European Union (EU), its individual member countries, and countries within the European Free Trade Association (EFTA). The publication provides a comprehensive overview of European living conditions through three primary thematic chapters covering income and inequality; households, work intensity and childcare; and health, disability and well-being. It represents the fourth edition of this series and incorporates clear visualisations alongside concise analysis to make complex statistical data accessible to a broad audience, including citizens, researchers, and decision-makers.

Purpose

The primary purpose of this series is to provide high-quality statistics that inform socio-economic analysis and the shaping of EU policies and targets. It is a central tool for monitoring the European Semester and the implementation of the European Pillar of Social Rights. The report highlights the EU’s commitment to tackling the root causes of poverty, specifically supporting the EU Anti-Poverty Strategy which aims to reduce the number of people at risk of poverty or social exclusion by at least 15 million by the year 2030, including a specific target for at least 5 million children. It also serves to monitor the impact of external economic pressures, such as the energy market crisis and periods of rising consumer prices, on the most vulnerable groups in society.

Methodology

The analysis is primarily based on data from the EU statistics on income and living conditions (EU-SILC), which covers both objective and subjective aspects of poverty, social exclusion, housing, labour, and health. Data is collected at both the household and individual levels in monetary and non-monetary terms. The statistical population consists of people living in private households, excluding those in collective households or institutions. Indicators for the EU are calculated as population-weighted averages of national indicators. Key metrics employed include the equivalised disposable income, expressed in purchasing power standards (PPS) to account for price-level differences, and the Gini coefficient, which measures income distribution deviations. The report also utilises NUTS 2 regional classifications and assessments of severe material and social deprivation based on a 13-item framework.

Use for finance professionals

Finance professionals can use this benchmark series to perform deep-dive socio-economic risk assessments across different European jurisdictions. By examining the Gini coefficients and income distribution data, analysts can better understand levels of economic disparity that may impact market stability and consumer purchasing power. The detailed figures on housing cost overburden rates and utility bill arrears provide critical insights into the financial health of households and the potential for credit risk within the residential sector. Furthermore, the data on energy efficiency improvements and the impact of the energy crisis on living standards allows investment professionals to integrate social and environmental factors into their ESG frameworks. The inclusion of regional data at the NUTS 2 level enables a more granular analysis of economic conditions, helping to identify specific areas of growth or vulnerability within the European market.