EU income inequality edges lower in 2025, Eurostat data show

EU income inequality edges lower in 2025, Eurostat data show
EU income gap narrows

Income distribution across the European Union is slightly more equal in 2025, with the bloc's Gini coefficient falling to 29.2 from 29.4 a year earlier. The latest reading still shows wide gaps between member states, with Slovakia recording the lowest level of inequality and Bulgaria the highest.

Highlights

  • Eurostat reports the EU's Gini coefficient fell to 29.2 in 2025 from 29.4 in 2024, indicating slightly improved income equality.
  • Country disparities persist, with Slovakia recording the lowest Gini coefficient at 23.0 and Bulgaria the highest at 37.7 in 2025.
  • Belgium, Czechia, Slovenia, and Poland continue to show lower income inequality, while Latvia and Lithuania remain at the higher end among EU member states.

Eurostat data on 2025 income distribution

As reported by Eurostat, the Gini coefficient for the EU stands at 29.2 in 2025, compared with 29.4 in 2024. The indicator measures how income is distributed within a country against a benchmark of perfect equality.

A score of 0 represents complete equality, where everyone has the same income, while a score of 100 indicates complete inequality, where one person receives all income. The latest EU figure therefore points to a modest improvement in overall income distribution across the bloc.

Country gaps remain wide across the bloc

Across EU countries in 2025, the Gini coefficient ranges from 23.0 in Slovakia to 37.7 in Bulgaria, underlining persistent differences in household income distribution between member states.

After Slovakia, the most equal income distributions are recorded in Belgium at 23.4, Czechia at 24.0, Slovenia at 24.6 and Poland at 24.9. At the other end, Bulgaria is followed by Latvia at 35.6 and Lithuania at 35.5, showing that inequality remains significantly higher in parts of eastern Europe.

In our earlier article, we covered Mario Draghi’s warning that keeping interest rates above growth rates can worsen public debt dynamics and fuel pressure for “fiscal dominance,” even as central banks focus on bringing inflation under control. We also noted his argument that policy should avoid being more restrictive than necessary because higher borrowing costs can depress productive investment, innovation, and long-term growth in Europe.

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