European energy and housing costs drive poverty risks

Rising energy and housing costs are threatening to push millions of people in Europe into poverty. The European Commission has signed a memorandum of understanding with the European Economic and Social Committee (EESC) to develop a unified anti-poverty strategy for the bloc.

Energy prices have surged significantly, with diesel up 35%, gasoline up 23%, and household gas up 12% between February and October. Additionally, housing costs across the EU rose by up to 53% between 2010 and 2024. These increases are exacerbated by geopolitical tensions in the Middle East and the ongoing effort to phase out Russian energy.

Experts warn that without intervention, the number of people at risk of poverty in the EU could rise from 90 million to 120 million. The new EU strategy aims to reduce the number of people at risk by 15 million by 2030, including 5 million children, with a long-term goal of eradicating poverty by 2050.