New JRC research reveals that a coherent reform package could lift 18.5 million people out of poverty in the European Union by 2030. This exceeds the EU’s current target to reduce poverty by at least 15 million.
The proposed reforms include increases in minimum wages, expansion of employment opportunities, and updates to minimum income schemes. The additional fiscal cost of these reforms is estimated at around 0.25% of the EU’s gross domestic product.
Current data shows that approximately 93 million people, or one in five Europeans, live in poverty or social exclusion. The EU has already made progress, reducing the number of people at risk of poverty or social exclusion by about 3.4 million since 2019.
The JRC used the EUROMOD model to simulate the effects of these policy reforms on poverty reduction. An acceleration scenario could potentially lift close to 55 million people out of poverty or social exclusion across the EU.
The European Pillar of Social Rights outlines a headline target for reducing the number of people at risk of poverty or social exclusion by at least 15 million by 2030. This framework includes directives on adequate minimum wages and recommendations for minimum income.
Observers expect that implementing these reforms will create significant improvements in living standards across the EU. However, officials have not confirmed specific timelines for rolling out these measures.
The findings highlight the potential impact of strategic reforms on the EU’s overall poverty strategy, aiming to create a more inclusive society for all its citizens.
