Some European nations have overtaken wealthier neighbors in terms of real purchasing power
Real purchasing power in European countries differs significantly from average wage levels due to variations in the cost of living and housing prices. Calculations based on 2025 Eurostat data show that certain countries with lower population incomes are outperforming wealthier neighbors. This was reported by Minfin citing Ірина Серова, according to the portal PromPolitInform.
Luxembourg maintains the lead in purchasing power, where wages stand at 206% of the European Union average, while prices reach 132%. Denmark and Germany show nearly identical final results, even though Danish nominal incomes are approximately 30% higher than German ones due to a significant difference in the cost of goods and services. Ireland, while ranking third in the united Europe for wage levels, drops to the sixth position in citizens’ financial capabilities due to high expenses for living and housing.
Poland and Romania’s indicators
Poland and Romania have surpassed Portugal in the purchasing power index, reaching 79 and 77 points respectively. In Romania, wages amount to approximately half of the pan-European level, yet consumer prices do not exceed 65% of the EU average. Estonia shows a different result, where incomes are 67% of the average while prices reach 101%, causing the index to stop at 66 points.
Slovenia, with a score of 102 points, exceeds the European average and outperforms France and Sweden. Lithuania’s purchasing power reaches 94 points, allowing it to surpass Italy, Malta, and Spain. Among countries in the southern region, the best result is recorded in Spain with 92 points, while Italy stands at 85 points and Portugal at 72 points.
The situation in Greece and Bulgaria
Greece has the lowest purchasing power among EU states in this comparison with a score of 52 points, trailing behind Slovakia and Bulgaria. At the same time, citizens who receive income from abroad or work remotely for foreign employers find themselves in a different economic situation. In Bulgaria and Romania, every euro buys approximately one and a half times more goods compared to European average indicators.
National indicators should be viewed only as an initial benchmark for comparison, as the final income of a new specialist will depend on qualifications and language proficiency. “One should compare not the size of the salary, but what can be bought with it,” explains Iryna Serova.
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