National poverty rates in the EU vary between over 25 per cent in Romania and less than 10 per cent in the Czech Republic. For Germany, the figure is 16.5 per cent (2016). The official Eurostat figure for the EU as a whole is 17.3 per cent, which puts poverty in the EU only slightly higher than the level in Germany. However, if a proper EU-wide poverty threshold is calculated, the figure comes out significantly higher. [...]
The poverty rate has decreased slightly since 2015, with the number of people at risk of poverty in the EU falling by around 4 million. This fall is equivalent to just under one percentage point. Any progress may be due to relatively strong growth, especially in the poorer countries. [...]
(a) Intra-country inequality is increased by welfare cuts and labour-market deregulation, technological change and globalisation. All these causes can be addressed by government policy. For example, in Germany the introduction of a minimum wage has halted the rise in inequality observable since 1995. In the EU, a stricter Posted Workers Directive could curb wage competition. In his most recently published book, the late Tony Atkinson presented numerous suggestions for how intra-country inequality could be reduced, covering all categories of cause. Unfortunately, the EU’s economic-policy advice and the requirements it has imposed on indebted countries have instead tended to increase inequality.
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