EU report examines poverty risk reduction strategies

A report published Wednesday by the European Commission's Joint Research Centre analyzes strategies to reduce the risk of poverty or social exclusion (AROPE) in the EU. The study notes that in 2024, approximately 21% of the EU population, or 94 million people, faced such risks, a figure that has remained stable since 2018. The European Pillar of Social Rights Action Plan aims to reduce this number by at least 15 million people by 2030. For Cyprus, the baseline AROPE rate is 15.8%, which is lower than the EU average of 16.4%. The analysis tested alternative policy scenarios, including reforms to minimum income systems, minimum wages, and employment expansion. Under a scenario involving increased adequacy of minimum income systems, Cyprus's AROPE rate could drop to 13.1%. Furthermore, extending coverage to more beneficiaries could lower the rate to 11.7%, representing a significant projected reduction compared to the baseline.