Signs
of growing inequality between classes and countries
Latest
European Commission report key findings:
"According
to Eurostat data, poverty and social exclusion continued to increase
in 2011 and 2012, reflecting the deterioration of labour market
conditions, as long-term unemployment increased and an increasing
share of jobs do not ensure a living wage (e.g. involuntary
part-time). Poverty and social exclusion are estimated to have
increased further in a few countries in 2013 (according to Euromod
estimates available for 10 countries), especially in countries where
it was already high."
Poverty
"Between
2011 and 2012, the population at risk of poverty or social exclusion
increased in one third of EU-Member States, amongst them in countries
with low levels of poverty and social exclusion such as the United
Kingdom, Luxembourg and Austria.”
"The
latest survey data indicated that poverty would continue to increase
in 2012, particularly in a few countries where economic and labour
market conditions had continued to deteriorate. In the EU-28, 24.8
% of Europeans were affected by the risk of poverty or social
exclusion in 2012, an increase of 0.5 pps since 2011. This
corresponds to 124 million people (123 million in the EU-27)."
"Between
2011 and 2012, the share of the population at risk of poverty or
social exclusion increased in a third of the EU’s Member States:
EL, CY, IE, IT, RO, HU, MT and PT. It dropped in HR, BG, BE and ES,
but this decrease is partly explained by a fall in the poverty
threshold, reflecting lower overall living standards in these
countries. Rates also increased in countries with relatively low
levels of poverty and social exclusion, such as the UK, LU and AT. In
the Baltic States, especially LV, the situation remained stable or
even improved due to economic recovery in recent years, following a
profound shock just after the crisis. Nevertheless, poverty and
social exclusion remain high in these Member States."
"The
average at-risk-of-poverty rate (relative income poverty) remained
stable at EU level between 2011 and 2012, but this hid diverging
national developments, with a particularly sharp increase in Greece.
However, changes in the rate must be considered alongside changes
in the poverty threshold, which shifts in line with total income. The
combination of labour market deterioration and the weakening
stabilising effect of social protection over time may result in
marked declines of household disposable incomes and thereby drops in
the poverty threshold (defined as 60 % of median equivalised
income). In such cases, changes in the (relative) risk-of-poverty
rate do not necessarily reflect changes in the actual income
situation of households. The anchored poverty rate, using a threshold
fixed at 2008 value (updated by inflation) over time, helps to
disentangle the two effects."
"From
2010, as a consequence of sustained hardship, severe material
deprivation started to increase significantly across Europe (down by
0.1 pp between 2008 and 2010, but up by 1.1 pp between 2010 and
2012), rising especially sharply in EL, CY, IE, IT, HU, MT, ES and
the UK."
"Between
2011 and 2013, nowcast estimates that the biggest changes in poverty
levels in most Member States will continue to affect the elderly."
Inequality
"The
prolonged economic downturn has seen households’ financial distress
intensify in recent months, due to the need to draw on savings or
borrow in order to maintain current standards of living. Households
in the lowest income quartile experienced the greatest difficulty in
covering their current expenditure."
"The
incidence of financial distress among all households worsened over
2013 in several Member States and remains higher than in 2007 in most
of them, ranging from less than 5% in Germany and Sweden to more than
25% in many Southern Member States. The increase in financial
distress among people in the lowest income quartile households, which
has accelerated since 2007 in all Member States soared in 2013 in
France and Spain, while nearly halved in Bulgaria, Croatia and
Ireland. The share of the population in the lowest income quartile
households that suffers from financial difficulties ranges from less
than 10% in Germany and Luxembourg to more than 40% in Italy,
Romania, Slovakia and Spain."
Unemployment
"The
EU’s job finding rate remained low over the past year compared with
the pre-crisis period. In the second semester of 2012, it
dropped below 12 % from an average of over 20 % five years ago."
"Unemployment
has stabilised since mid-2013, but figures for January 2014 show that
it is still at record high levels, with around 26 million people
(10.8 % of the economically active population) in the EU looking for
work. In several Member States, unemployment remains close to the
historically-high levels first seen in the current crisis."
"In
2013, unemployment affected around 10% of young people aged 15-24 in
the EU, up from 8% observed in 2008. However, also people aged 25-29
who often enter the labour market after graduation, require policy
attention, because they suffer from a similar lack of job
opportunities (with the unemployment ratio of 10% as well)."
Social
benefits
"However,
three years into the crisis (2012 in most countries), social
expenditure grew well below its trend and went on adjusting downwards
despite a worsening of the output gap, contrary to what happened in
past instances of declining and negative output gap."
"In
2011, social protection expenditure declined in real terms, mainly
driven by the reduction in expenditure on unemployment benefits and
sickness and disability."
"Changes
to the tax and benefits systems over the period 2008-13 have
sometimes led to significant reductions in the level of real
household incomes, potentially putting a heavy strain on the living
standards of low income households."
The
No 1 “guinea pig” of neoliberal dictatorship
“The
at-risk-of-poverty rate remained stable on average at EU level
between 2011 and 2012, hiding diverging national developments at
national level. It increased especially noticeably in Greece and
is estimated to increase further between 2011 and 2013 in this
country and a few others."
"The
unemployment rate ranges from around 10% or less in countries little
affected by labour market deterioration, i.e. Austria, Germany and
the Netherlands, to more than half of the young active in the
labour market being unemployed in Greece and Spain – nearly a
triple compared to 2008."
"Greece
has seen a strong increase in the risk of poverty (by 1.7 pps since
2011), accompanied by a strong drop in the risk-of-poverty threshold
(by 14.3 % since 2011). If the poverty threshold had remained at
the 2008 level (updated by inflation), the risk of poverty in Greece
would have increased by 15.7 pps between 2008 and 2012."
"Working-age
adults have been strongly hit in Greece, reflecting the deterioration
in labour market conditions. As many working-age adults live in
households with children, child poverty has also been impacted."
"In
Greece, working-age adults are expected to be the group most exposed
to poverty increases between 2011 and 2013."
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