The disparities in living standards remain significant in the European Union, particularly between the wealthy countries of the northern eurozone and the eastern European countries. The 2008-2009 crisis disrupted the top 10 in the ranking.
The economic and financial crisis of 2008-2009 somewhat reshuffled the wealth cards in the European Union.
Overall, the disparities in living standards have narrowed little: the GDP per capita, measured in “purchasing power parities,” which excludes the effects of inflation, varied in 2010, according to Eurostat, from 43% of the European Union average—the level of the poorest country, Bulgaria—to 283%, at the top of the ranking where Luxembourg rules.
However, as Eurostat usefully notes, Luxembourg benefits from the income of a large number of cross-border workers who, without being residents, contribute to the GDP.
Its first place is therefore somewhat artificial and accentuates the reality of these disparities within the European Union.
The Netherlands, second on the list with a GDP per capita about a third higher than the European average, dethroned Ireland, which fell to fourth place compared to its 2009 ranking where it was second.
The United Kingdom also lost a few places, dropping from seventh to tenth place.
The Netherlands, Denmark, Ireland—despite its decline—Austria, and Sweden make up the leading group in Europe where the living standard per capita is highest, about 25% above the average, following Luxembourg.
France, for its part, shows a per capita living standard unchanged from 2009 and ranks just above (7%) the European average.
However, it ranks below the eurozone average, while the United Kingdom, Finland, Belgium, and Germany are between 10% and 20% above the European Union average.
And while the GDP per capita in France stagnated, that of Germany progressed.
France is thus gradually approaching the group of countries whose per capita income is around the Union average, like Spain, Italy, and Cyprus.
Following, after Greece and Portugal, is the cohort of the poorest countries, the Baltic countries, and the central and eastern European countries: Slovakia is positioned about 25% below the average, followed by Estonia, Hungary, Poland, Romania, and Bulgaria, whose living standards are more than 35% below.
It is noteworthy that outside the European Union, Iceland, heavily affected by the 2008 crisis, saw its score decline by 10 points.
As for Croatia, the imminent 28th member of the European Union, its GDP per capita is positioned between that of Lithuania and Poland.
