The FINANCIAL — In 2008, 17% of the population in the EU27 were at risk of poverty. This means that their income after social transfers was below the poverty threshold1. Since 2005, the at-risk-of-poverty rate in the EU27 has been nearly stable, varying between 16% and 17%.
The highest at-risk-of-poverty rates in 2008 were found in Latvia (26%), Romania (23%), Bulgaria (21%), Greece, Spain and Lithuania (all 20%), and the lowest in the Czech Republic (9%), the Netherlands and Slovakia (both 11%), Denmark, Hungary, Austria, Slovenia and Sweden (all 12%).
It should be noted that the at-risk-of-poverty rate is a relative measure of poverty, and that the poverty threshold varies greatly between Member States.
"This News Release, based on data from the EU-SILC survey2, is issued by Eurostat, the statistical office of the European Union in connection with the opening conference of the European Year for Combating Poverty and Social Exclusion3, organised by the European Commission and the Spanish Presidency of the EU, and which takes place in Madrid on 21 January 2010," Eurostat informs.
One child in five in the EU27 at risk of poverty
In 20 of the 27 Member States, child at-risk-of-poverty rates were higher than for the total population. In 2008, the at-risk-of-poverty rate for those aged up to 17 years was 20% in the EU27. The highest rates were recorded in Romania (33%), Bulgaria (26%), Italy and Latvia (both 25%), and the lowest in Denmark (9%), Slovenia and Finland (both 12%).
Elderly people also face a higher risk of poverty than the total population. In 2008, the at-risk-of-poverty rate for those aged 65 years and over was 19% in the EU27. The highest rates were observed in Latvia (51%), Cyprus (49%), Estonia (39%) and Bulgaria (34%), and the lowest in Hungary (4%), Luxembourg (5%) and the Czech Republic (7%).
Being employed significantly reduces the risk of poverty. In 2008, the at-risk-of-poverty rate for those in employment was 8% on average in the EU27, ranging from 4% in the Czech Republic to 17% in Romania.
Highest rate of material deprivation in Bulgaria, Romania, Hungary and Latvia
In order to draw a broader picture of social exclusion in the EU, the at-risk-of-poverty rate, which is a relative measure, can be complemented by the material deprivation rate, which describes social exclusion in more absolute terms. The material deprivation rate is defined as the enforced lack of at least three of nine items4. In 2008, 17% of the EU27 population was materially deprived according to this definition. The highest levels were registered in Bulgaria (51%), Romania (50%), Hungary (37%) and Latvia (35%), and the lowest in Luxembourg (4%), the Netherlands and Sweden (both 5%).
Looking at some of the individual items defining material deprivation, it appears that in 2008, 37% of the EU27 population could not afford a one week annual holiday away from home, 10% could not afford to keep their home adequately warm, 9% could not afford a meal with meat, chicken or fish every second day and 9% could not afford a personal car.
The annual national at-risk-of poverty threshold is set at 60% of the national median income per equivalent adult. The median income separates the total population into two equal parts. The income per equivalent adult is calculated by dividing the total household income by its size determined after applying the following weights: 1.0 to the first adult, 0.5 to other household members aged 14 or over and 0.3 to each household member aged less than 14 years old. The total household disposable income is the total net monetary income received by the household and its members, namely all income from work, private income from investment and property, plus all social transfers received directly including old-age pensions, net of any taxes and social contributions paid. However, indirect social transfers, loan interest payments, transfers paid to other households, receipts in kind and imputed rent for owner-occupied accommodation are not taken into account.
The income reference period is 2007 for all countries except the United Kingdom for which the income reference period is 2008 and Ireland for which the survey is continuous and income is collected for the last twelve months.
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