Poverty in Europe is increasing

Economic disparities in Europe are widening. Since the financial crisis, most EU countries have struggled with increasing poverty, rising unemployment and growing social exclusion. A new Oxfam report shows that the number of EU citizens living in 'severe material deprivation' increased by 7.5 million from 2008 to 2013. Today, in 2015, 123 million Europeans are at risk of poverty, the majority of whom are women, young people and migrants. To reverse this negative trend in Europe, we need to safeguard the political model that helped create the continent's prosperity.

The report, A Europe for the Many, Not the Few, confirms and complements existing research by the International Monetary Fund and others on how growing inequalities make the fight against poverty more difficult. Among other things, the report shows how political decisions have driven or counteracted inequality in the EU. Sweden has the most progressive tax and benefit system in Europe, helping to reduce income inequality by 53%. In Spain, the corresponding figure is 32%.

We live in a rich continent where increased poverty and inequality are largely the result of political decisions. Poverty in the EU is not really a question of scarcity, but of resource distribution. Credit Suisse estimates that the richest 1% of Europe's population owns almost a third of the continent's assets while the poorest 40% of the population share less than 1% of the net assets.

The problem is not that people are wealthy, but the problem of democracy that arises when wealthy groups can buy influence over politics in a way that others cannot. The report warns that political decision-making in Europe is increasingly influenced by wealthy groups, whose interests are promoted at the expense of the majority. The result is widening gaps and the erosion of democratic institutions. Greater transparency and openness in political decision-making is necessary to limit the influence of special interests on policy-making at the expense of the public.

Extensive austerity measures and regressive tax systems are other important drivers of widening gaps. Many of the measures implemented after the recent financial crisis have hit the poorest hardest. Tax systems that allow multinationals to avoid corporate taxes also increase the tax burden on individuals. In both cases, ordinary people pay the price.

It is high time to return to the social model that has fostered economic growth and reduced poverty in Europe for decades. The continent is still one of the richest regions in the world, so lack of resources cannot be the main problem.

To reverse this negative trend, Oxfam calls on the EU institutions and Member States to:
- Strengthen democratic institutions
- Reinvest in public services
- Guarantee decent wages
- Fight tax evasion and harmful tax competition.

For an organization like Oxfam, which aims to fight world poverty, it is a priority.