Thursday

28th Mar 2024

Netherlands tops EU social safety net for the poor

  • 'There's only one country where the minimum income is above the poverty line,' said EU jobs commissioner Nicolas Schmit (r) (Photo: European Union, 2022)
Listen to article

The Netherlands is the only EU state whose minimum income keeps people out of poverty, a new European Commission report shows.

The income is not measured as a minimum wage but rather as a social net, like a cash payment, to ensure people do not become destitute.

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

The figures published on Wednesday (28 September) come at a time when EU states are grappling with inflation and a sharp increase in energy and food prices.

However at the bottom end is Romania, Bulgaria and Hungary, where minimum net incomes fall way below what is needed to keep people out of poverty, says the document.

Speaking to reporters in Brussels, the EU jobs commissioner Nicolas Schmit said that those at risk of poverty had already increased due to pandemic caused by Covid.

More than 95 million people were already at the risk of poverty in the EU last year, representing some 20 percent of the population.

Now Russia's war in Ukraine is another factor that is likely to plunge more into the poverty trap, he said.

According to Schmit, minimum incomes in some 22 EU states fall below the poverty line.

"And around 20 percent of jobless people at risk of poverty are not eligible to receive any income support," he said.

The Brussels-executive also estimates that between 30 to 50 percent of those eligible for minimum income do not even get help.

This is generally because they do not know they can or they do not know how.

The European Commission is now asking EU states to act as part of wider goal to lift 15 million people out of poverty over the next eight years.

But the request is only a recommendation, which includes demanding EU states link their minimum-income scheme with the labour market integration of those who can work.

The schemes should not discriminate against age and should also reach individuals, especially single women with children, noted Schmit.

In an emailed statement, the Greens at the European Parliament, welcomed the proposal.

But they say a legislative bill like a directive is needed to better enforce the idea.

"So far, non-binding instruments have failed to keep people in the EU out of poverty," said Sara Matthieu, a Belgian Green MEP.

They say that around 35 percent of the working age EU population at risk of poverty is not covered by minimum income or any other social benefits.

The EU's statistical office Eurostat, citing figures from 2019, says EU states collectively spent €3,761bn on social protection benefits.

But almost half of that went to retirement payouts, followed by health care at around 30 percent. Only around €59bn went to income benefits.

Meanwhile, Germany, Slovenia and the Czech Republic are the only three EU states where the minimum wage is so low it keeps people below the poverty line.

Germany has since passed legislation to increase the minimum wage to €12 per hour as of next month.

The European Commission report further notes that the tax-benefit system in Slovenia and the Czech Republic "do not seem to support minimum wage earners sufficiently to ensure that work pays. "

EU unveils energy crisis plan, but warns of difficult 'winters'

Crisis measures include imposing cuts in power-consumption across the bloc, a cap on the excess revenues made by renewable and nuclear energy, and a "solidarity mechanism" to channel the massive and unexpected profits of fossil fuel firms to citizens.

Denmark and Hungary oppose EU rules on minimum wages

Work ministers reached a common position over EU draft law on minimum wages in Europe, without the support of Denmark and Hungary. The agreement comes after months of negotiations - and strong opposition led by Scandinavian countries.

Opinion

Von Der Leyen must shield Europe from a social tsunami

Extraordinary times call for extraordinary measures. It is time for Ursula von der Leyen to rise to the challenge. Better late than never, writes the opposition Socialists & Democrats' vice-president ahead of the State of the Union speech.

EU commisisoner Šuica sounds alarm on demographic shift

The EU will have to step up its efforts to tackle looming demographic challenges over the next five years. If not, the bloc faces "sleepwalking into dark scenarios", warns EU commission vice-president Dubravka Šuica.

Latest News

  1. 'Swiftly dial back' interest rates, ECB told
  2. Moscow's terror attack, security and Gaza
  3. Why UK-EU defence and security deal may be difficult
  4. EU unveils plan to create a European cross-border degree
  5. How migrants risk becoming drug addicts along Balkan route
  6. 2024: A Space Odyssey — why the galaxy needs regulating
  7. Syrian mayor in Germany speaks out against AfD
  8. Asian workers pay price for EU ship recycling

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Stakeholders' Highlights

  1. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  2. UNOPSFostering health system resilience in fragile and conflict-affected countries
  3. European Citizen's InitiativeThe European Commission launches the ‘ImagineEU’ competition for secondary school students in the EU.
  4. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  5. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  6. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA

Join EUobserver

EU news that matters

Join us