Listen: Why are Europeans struggling to eradicate poverty?

Production: By Europod, in co-production with Sphera Network. EUobserver is proud to have an editorial partnership with Europod to co-publish the podcast series “Briefed” hosted by Léa Marchal. The podcast is available on all major platforms. Find the full transcript below: In 2021, the EU set itself targets to reduce poverty and improve social protection by 2030. They are part of the European Pillar of Social Rights. Five years on, some areas have seen progress, but others remain far from meeting their targets. This is particularly true when it comes to reducing poverty and inequalities. Why are some European countries struggling to reduce poverty? In 2024, more than 93 million people in the EU were at risk of poverty or social exclusion. That’s roughly the combined population of Germany and Belgium. By 2030, the EU wants to reduce that number by at least 15 million people. So, are we on track? Not really. Since 2021, when the target was set, the number of people at risk of poverty or social exclusion has fallen by only 3.5 million. What's more, poverty is actually increasing in several EU countries. In Lithuania, for example, the share of people at risk of poverty or social exclusion rose by 1.5 percentage points in 2024, even though it was supposed to decline. According to the European Commission, one of the biggest obstacles to reducing poverty is the quality of jobs. The EU is actually close to reaching its 2030 employment target of 78 percent. Today, the employment rate stands at around 76 percent. But having a job is not always enough to escape poverty. Low wages, insecure contracts and self-employment with limited social protection mean that many people remain financially vulnerable despite being in work. The Commission also points to the skills and education gap, which reinforces inequalities in the labour market. Highly educated workers are much more likely to access well-paid, secure jobs, while people with lower levels of education or a migrant background are more likely to end up in precarious employment. Then there is social protection. Systems vary significantly from one Member State to another, and the Commission believes many could be made more effective. Benefits are often too low, but this is not it. Some groups who would benefit from stronger support—such as many self-employed workers—are still not adequately covered. Housing is another major challenge. Rising rents and housing costs are taking up an ever-larger share of household income, making it increasingly difficult for many Europeans to afford decent housing and maintain a decent standard of living. Against this backdrop, yesterday the European Commission presented a new Communication setting out recommendations to help achieve the objectives of the European Pillar of Social Rights. So, what does it propose? Well, in many ways, it's the usual recipe. The Commission argues that the EU has already adopted many of the necessary laws and programmes, and that member states now need to fully implement them. That includes measures such as the Minimum Wage Directive and the Pay Transparency Directive. But that alone is unlikely to be enough to address Europe's social challenges. More must be done to ensure that young people across Europe can find jobs they enjoy and that provide a decent standard of living. This is what the Commission calls the "right to stay"—the idea that people should not have to leave their region or country to build a good life. Later this year, the Commission is expected to present its Right to Stay Strategy. But, like the European Pillar of Social Rights itself, or the EU's anti-poverty strategy, it may not prove revolutionary. As we've discussed in a previous episode of Briefed, many EU governments are constrained by tight public finances. And when budgets are cut, social programmes and healthcare are often among the first areas to be affected. In other words, it's difficult to do more with less. If the EU wants to meet its own targets, it will need to find new and effective ways to reduce poverty and social exclusion.