More is spent on housing and services - Which EU capitals have rents higher than minimum wages?
Housing and utility bills are the largest category of expenditure for European households. According to the latest Eurostat figures, 23.6% of household expenditure in the EU goes on housing, water, electricity, gas and other fuels. Rents account for a particularly large share in large cities.
Most importantly, rent is a significant burden for those earning the minimum wage, exceeding their monthly income in many European capitals. According to an analysis by the European Trade Union Confederation (ETUC) based on EU data, the average cost of renting a two-bedroom apartment in the capitals of most EU countries exceeds the gross minimum wage.
Prague and Lisbon were hit hardest by rental costs. People earning the minimum wage in the Czech capital suffer the most. In Prague, the average rent is 1,710 euros, while the minimum wage in the country is 924 euros. This means that an amount equal to 185% of the minimum wage is needed to afford a two-bedroom apartment.
Lisbon ranks second with 168%. In Portugal, the equivalent gross monthly minimum wage (paid over 14 months a year) is €1,073, while the average rent in the capital is €1,710.
The share of the gross minimum wage required for rent also exceeds 150% in Budapest (159%), Bratislava (158%), Sofia (154%), Athens (153%) and Riga (151%). This means that those earning the minimum wage will have to spend their entire salary on rent and will still need more than half of their additional salary to cover it.
In contrast, Brussels emerges as the best EU capital for those earning minimum wages to afford rent. Gross minimum wages cover 70% of rental costs there. In Brussels, the average rent for a two-bedroom apartment is €1,476, while the minimum wage is €2,112.
Berlin is second best at 76%. The share of the gross minimum wage required for rent is 85% in Nicosia, 87% in Luxembourg and 96% in The Hague.
According to analysts, high housing costs and low wages are driving people into poverty and the economy towards a recession.
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