More or less poverty in the EU vs US?

The United States has a 10-12% official poverty rate; ~17-18% under relative poverty or some OECD comparative measure. What's interesting is that despite Europe's socialistic/high regulated government which stifles innovation and economic output, those nations generally have higher poverty rates than the US. Even thought the US demographic profile is far less homogenous.

So much for socialism taking care of the common man "better".

Europe’s Poverty Rates by Country

September 8, 2025

By Pallavi Rao, Visual Capitalist

See this visualization first on the Voronoi app.

Key Takeaways

Many Eastern and Southern European countries (Bulgaria, Romania, Greece, Spain, Italy) show higher rates of poverty risk than their Western or Northern counterparts.

This likely reflects ongoing economic development challenges and lower wage levels in these regions.

Europe may be one of the wealthiest regions on the planet, but living standards still vary widely across the continent.

The map above spotlights Europe’s poverty rates in 2024, measured by the share of people at risk of poverty or social exclusion in each country.

The data for this visualization comes from Eurostat.

Unlike how the U.S. measures poverty (income to afford food), there are three related indicators that the EU looks for.

Individuals are included if they meet any one of the below thresholds (but are only counted once if they meet multiple criteria):

Income below 60% of the national median.

Material deprivation: where they cannot meet or do not have, seven of 13 key basics: i.e. being able to shoulder an unexpected expense, keeping their home warm, having an internet connection, etc.

Low work intensity: Adults (18–64) in the household worked ≤20% of the months they could last year.

Note: Data unavailable for missing countries, including ones not tracked by Eurostat.

Greece (26.9%) and Spain (25.8%) also stand out in the south, where unemployment rates climbed after the 2008–2014 sovereign-debt crisis and never fully recovered. Persistent youth unemployment has made it harder for younger generations to accumulate wealth.

Lithuania (25.8%) and Latvia (24.3%) lead the Baltic region, highlighting a lingering urban-rural divide.

Households in rural areas earn roughly 20% less than those in cities, a gap that widens vulnerability to social exclusion.

Northern and Central Europe Show Lowest Poverty Risk

Czechia posts the lowest share at 11.3%, followed by Slovenia (14.4%) and the Netherlands (15.4%).

These countries pair higher median wages with extensive welfare programs that cushion income shocks.

Scandinavian nations cluster near the EU average: Finland (16.8%), Sweden (17.5%), and Denmark (18.0%).

Germany (21.1%) sits slightly above the EU average (21.0%), reflecting disparities between industrial southwest regions and lower-income eastern Länder. This is an echo of reunification divides that still influence living standards today.

The EU’s 2030 Poverty-Reduction Target

Brussels aims to lift at least 15 million residents, including 5 million children, out of poverty or social exclusion by 2030. Progress has stalled since the pandemic, as inflation eroded real wages and increased energy and food bills.

Success may hinge on improving access to affordable housing, upskilling workers for higher-productivity jobs, and closing gender pay gaps.

Without faster income growth in southern and eastern member states, the bloc risks entrenching a north-south divide.