Publication - Europe’s pre-existing household debt condition likely to be exacerbated by virus crisi
Topic: COVID-19Social inclusionPay and incomeQuality of life and public servicesPublic servicesSocial policies
The coronavirus (COVID-19) crisis, and the economic and social challenges that it entails, comes at a time when many vulnerable groups in Europe were already exposed to debt and arrears, according to Eurofound’s new research on household indebtedness. The pandemic could also exacerbate an already divergent situation in the EU, with some countries in southern and eastern Europe disproportionately affected by debt, arrears and risk of poverty.
The new report, based on an analysis of the 2016 European Quality of Life Survey, shows that debt and risk of poverty were disproportionately problematic in southern and eastern Europe. This was most notably the situation in Greece, where over half of those surveyed reported being in arrears; in total, 52% said they were in arrears in rent or mortgages, consumer credit, loans from family or friends, or utility and phone bills.
