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INEQUALITY IN EUROPE: UNEQUAL TRENDS
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a few overcome the 20 %-mark and only rarely
(with the exception of Slovenia). On the other
hand, there are some welfare states (i.e.
Scandinavia) whose high rate continues to
grow. The high growth in the austerity countries
Greece, Spain, Portugal and Ireland is conspicu-
ous (the rate between 2000 and 2011 has more
than doubled!).
Poverty remains in close relationship with in-
equality. In the EU, the poverty rate is defined as
the population share that has less than 60 % of
the median income at its disposal. As shown in
Table 7
, poverty rates in the EU present a high
dispersion. While the rate lies mostly under 20 %
in the rich countries, it grows in Bulgaria and
Romania up to over 40 %. The dispersion has
receded since 2005, but the ratio decrease be-
tween the highest and the lowest rate is main-
ly due to the relatively strong decline of the
poverty rate in Bulgaria, from over 60 % to
under 50 %.
Poverty rates closely correlate to social pro-
tection expenditure. Bulgaria and Romania be-
long to the group of Member States with the
lowest share of social expenditure in the GDP
(clearly under 20 %), while richer countries
spend around 30 % of the GDP in social protec-
tion. Notwithstanding, this indicator should be
Table 5.
Modification of income distribution through redistribution.
Gini disposable income
Gini market income
Difference
Slovenia
0.2296
0.3723
0.14
Denmark
0.2433
0.3744
0.13
Czech Republic
0.2532
0.3804
0.13
Slovakia
0.2534
0.3628
0.11
Belgium
0.2563
0.4081
0.15
Finland
0.2584
0.4031
0.14
Sweden
0.2588
0.3680
0.11
Austria
0.2607
0.4062
0.15
Hungary
0.2791
Ireland
0.2892
Luxemburg
0.2915
0.4363
0.14
France
0.2920
0.4310
0.14
Netherland
0.2972
0.3908
0.09
Germany
0.3000
0.4197
0.12
Estonia
0.3056
0.3889
0.08
Greece
0.3067
Poland
0.3097
0.4348
0.13
Spain
0.3130
0.4052
0.09
Italy
0.3342
0.4647
0.13
United Kingdom
0.3446
0.4559
0.11
Portugal
0.3467
0.4581
0.11
OCDE-29
0.3041
0.4073
0.10
Source:
OECD (2011).