❌

Normal view

Europe’s Poverty Divide Persists as New Figures Reveal Huge Regional Disparities

16 October 2026 at 07:04

Nearly 93 million EU residents were at risk of poverty or social exclusion in 2025, with the latest regional figures revealing sharp differences both between and within member states. The findings raise questions about how effectively European investment is addressing longstanding economic inequality.

More than one in five people living in the European Union remained at risk of poverty or social exclusion in 2025, according to Eurostat figures that reveal substantial differences in living conditions across the bloc’s regions.

Approximately 92.7 million people, representing 20.9 per cent of the EU population, fell into the category during the year. Although the total declined slightly from 93.3 million in 2024, regional data show that economic vulnerability remains heavily concentrated in particular areas.

In 26 of the 243 EU regions for which figures were available, at least 31 per cent of residents were at risk of poverty or social exclusion. At the opposite end of the distribution, 24 regions recorded rates below 13 per cent.

The regional figures published by Eurostat show that the highest rate was recorded in French Guiana, at 54.8 per cent, while Slovakia’s capital region, Bratislavský kraj, recorded the lowest at 2.9 per cent.

National averages conceal substantial differences

The contrast is not confined to richer and poorer member states. In several countries, internal regional disparities are more pronounced than comparisons of national economic performance might suggest.

Within Slovakia, the proportion of people at risk of poverty or social exclusion in Východné Slovensko was 9.1 times the rate recorded in the Bratislava region.

In Italy, the equivalent rate in Calabria was 8.1 times that of Valle d’Aosta, illustrating the persistent economic divide between parts of the country’s north and south.

These differences are recorded in Eurostat’s regional living-conditions statistics, which provide a more detailed picture than EU-wide or national averages.

The comparison requires care. Eurostat’s measure of poverty or social exclusion combines three indicators: relative income poverty, severe material and social deprivation, and very low household work intensity.

Consequently, the figures do not mean that every person included lacks sufficient income to meet basic needs. They identify people experiencing at least one of the defined forms of economic disadvantage.

Differences in income, employment, household composition and living costs can also influence the results, making direct comparisons between metropolitan areas, rural districts and overseas territories more complicated than a single percentage might imply.

Nevertheless, the scale of regional variation illustrates why national economic growth does not automatically produce equivalent improvements in living standards throughout a country.

Poverty reduction remains an EU commitment

The European Union has set a target of reducing the number of people at risk of poverty or social exclusion by at least 15 million by 2030, including at least five million children.

The limited annual reduction recorded in 2025 indicates that progress remains modest relative to the scale of that objective.

The problem has become increasingly important for European policymakers as housing costs, energy prices and employment insecurity affect household finances in different ways across member states.

In May, the Commission presented an anti-poverty and housing policy package, bringing together measures concerning social inclusion, housing exclusion and child poverty.

The regional figures indicate that such initiatives will need to account for considerable differences in local economic conditions.

Policies designed for prosperous urban economies may have limited relevance in regions characterised by low employment, weak infrastructure or dependence on a small number of industries. Conversely, economic activity and relatively high average incomes do not necessarily prevent serious poverty problems within major cities.

Cohesion funding becomes a central question

The findings have direct relevance to negotiations over the EU’s next long-term budget, covering 2028 to 2034.

The European Commission’s proposal envisages roughly €450 billion for economic, social and territorial cohesion under national and regional partnership plans, including at least €218 billion for less developed regions.

The proposed structure would combine several funding programmes within broader national plans, with the Commission arguing that the changes could improve coordination and make spending more responsive to local requirements.

However, regional authorities have expressed concern that greater national control over financial allocations could weaken their influence over investment decisions.

As EU Today reported earlier this week, representatives of European regions have warned that the proposed budget arrangements could concentrate decision-making in national capitals.

The latest poverty statistics provide a concrete context for that disagreement. Investment priorities may differ considerably between a region experiencing industrial decline, an agricultural area with limited employment opportunities and a metropolitan district facing severe housing affordability problems.

A central question for EU institutions is therefore how funding allocations will reflect measurable regional needs rather than being driven primarily by national political negotiations.

The Commission maintains that its proposed partnership arrangements will protect allocations for less developed regions and continue supporting social inclusion.

Negotiations over the financial framework will determine how those commitments are translated into enforceable rules, while Eurostat’s figures provide a statistical basis against which future claims of progress can be assessed.

With 92.7 million people still at risk, the debate is not simply about the overall size of the EU budget. It is also about whether spending reaches the communities where economic disadvantage remains most concentrated.

❌