Saad Ullah
● A new report from EU_Eurostat reveals growing income inequality across Europe. In 2024, 17.4% of EU households had trouble making ends meet, while just 26% managed easily. The gap between financial security and hardship keeps widening.
● The numbers tell a concerning story: 32.4% of households got by "fairly easily," 24.2% faced "some difficulty," 11.1% struggled, and 6.3% were in serious trouble. That means nearly a fifth of Europeans remain financially vulnerable despite recovery efforts.
● These figures come as policymakers debate new support measures—temporary VAT cuts on essentials, tax credits for low earners, and other targeted relief. But there's a catch: without careful planning, these programs could strain public budgets and undermine long-term welfare funding.
● Economists warn that ongoing financial pressure on lower-income groups weakens consumer spending and tax revenues, creating fiscal risks. Some officials are considering alternatives like higher corporate taxes or progressive income tax brackets to spread the burden more fairly.
Saad Ullah
