2010 was the European year of 'combating poverty and social exclusion', the theme that the European Commission decided to keep among the priorities of the EU policies and, in the renewal of the impetus to combat all forms of poverty, the Europe 2020 strategy is aimed at reducing the number of people at risk of poverty or social exclusion by at least 20 million before 2020.
The progress in achieving this goal is measured by Eurostat by using three indicators: the risk of poverty, understood as the share of population that has an income lower than the poverty threshold, the rate of severe material deprivation, which refers to the impossibility of accessing certain goods and services considered common and ordinary or perceived as necessary for the standards of the society in which we live, and the percentage of people who belong to a household with very low work intensity or without work.
The combination of these three indicators results in a fourth summary indicator, used to monitor the European objective and obtained as a percentage of people who experience at least one of the three conditions identified by the individual indicators
(Note 8).
This approach reflects the multiplicity of factors underlying poverty and social exclusion, considering the various dimensions of quality of life and understanding, in addition to the lack of income and material resources to live in dignity measured by the risk of poverty, also forms of exclusion not necessarily linked to income, such as the inability to access basic services, or job insecurity.
The deprivation index examines 9 aspects, among which: not being able to afford a meal with meat or protein regularly, a holiday of at least a week away from home during the year, to not be able to pay bills, the rent or mortgage loans, to not be able to afford to adequately heat the home, face unexpected expenses or have certain durable goods, such as a telephone, a television, a washing machine and a car. It is considered as a state of material deprivation if a family cannot afford at least three of the goods and services described above and it is defined as a serious situation in which four or more are lacking.
It is therefore a non-monetary measure which takes into account the effects and final living conditions of people rather than the potential satisfaction of these needs, i.e. the lack of resources to obtain a certain well-being. Compared to the more traditional measures on poverty based on income, the new approach has the merit of adding important information, because material deprivation can be understood as the output of poverty in monetary terms when it persists over time. For example, think of a sick person who has to face large expenses for medical care which are then subtracted from money which would have been used for purchasing goods and services considered essential, although this person has a good income: his/her discomfort cannot be captured only by monetary income.
The two types of measures, monetary poverty and material deprivation, express different concepts, but they are complete and can be used together to analyse different aspects of living conditions of individuals and of families. Both, among other things, meet the definition of poverty defined by the Council of Ministers of the European Union in 1985, based on the consideration that the poor are those who have limited 'material, cultural and social' resources, so much as to not be able to ensure an acceptable living standard.
Finally, the 'very low work intensity' index takes into account another dimension of social exclusion, that of the labour market. Independently from the level of household income and serious material deprivation, it expresses the percentage of people who are under 60 years old who live in households where the adults work less than 20% of their potential.
Social exclusion in Europe
By considering the Eurostat definition, in 2010 in 27 European Union Countries, it is estimated that almost 116 million people were at risk of poverty or social exclusion and among these, 70 million lived in one of the 17 Eurozone Countries. They represent 23.5% of the overall population, a substantially stable percentage compared to the previous year, which hides significant differences between the Countries. If the Czech Republic, Austria and Countries of the North record the lowest percentages, lower than 18%, the most critical situations are observed in Lithuania, Latvia, Romania and Bulgaria, where over a third of the population live in discomfort.
Italy is found in an intermediate situation with 24.5% of the population at risk of poverty or social exclusion, a similar value to that of 2009; there are almost 15 million people in this situation, i.e. 13% of the EU27. Incidence values close to those of Italy are found in the United Kingdom (23.1%), Spain (25.3%) and Portugal (25.5%), whereas in France (19.3%) and Germany (19.7%) the difficulties are fewer.
(Figure 6.2.1)
16.4% of the European population are exposed to the risk of poverty, 8.1% are found in conditions of serious material deprivation, whereas 10% live in a household of low work intensity. All three of the conditions are connected (1.5% of the EU27 population), i.e. all those who are at risk of poverty live in conditions of serious material deprivation.
Within the European Union, the percentage of people who live in a state of serious material deprivation varies greatly (from 0.5% of Luxembourg to 35% of Bulgaria) compared to the risk of poverty (9% in the Czech Republic, 21.3% in Latvia) and Countries which experience high levels of economic poverty are not necessarily the same as those with high deprivation rates.
On the other hand, because of the considerations set out above, the two indicators highlight different aspects of discomfort. The Eurostat indicator of poverty, defining the risk of poverty of those who live in families with income lower than 60% of the average national income, is a measure of relative poverty, which takes into account the distribution of income in each Country and identifies the conditions of poverty in the disadvantage of some people compared to all the others. It is based, therefore, on the level of inequality between incomes, with the result that an average rich Country which however has strong imbalances in the distribution of wealth may have a high risk of poverty, due to the high number of people with incomes far from the average, perhaps even more pronounced than what occurs in a Country which is overall poorer but with less inequality.
The measure of material deprivation, however, captures the difficulties of daily living through the ability of the household to access determined goods and services, and does not depend on the characteristics of the distribution of income. The goods and services considered are the same for all European Union Countries, independently from various living standards achieved in various social contexts, therefore deprivation can be understood as a measure of absolute poverty. For example, Spain shows a risk of poverty (20.7%) higher than the European average; this is associated, however, to a contained rate of serious material deprivation (4%), signalling on one hand by a marked inequality in the distribution of income and on the other that the living conditions are acceptable for the large part of the population, even for those who have a low income. Conversely, in Hungary and Slovakia, despite a poverty rate that is relatively contained or anyway lower than Europe, the majority of the population is subject to limitations and sacrifices.
The most vulnerable Countries, recording the highest percentages of both indicators, are Latvia, Romania and Bulgaria.
(Figure 6.2.2)
Less sacrifices in Veneto
In Italy, a regional analysis shows the usual framework of territorial disparity, with very worrying indicators in the Southern regions: in particular, 4 out of 10 people are at risk of poverty or social exclusion in Calabria and almost half in Campania and Sicily.
However, 15% of the population suffer discomfort in Veneto (16.3% of households), with a slight percentage increase compared to the previous year (14.1%), although the incidence is below the national average (24.5%) and is one of the lowest among the Italian regions, after Trentino Alto Adige, Emilia Romagna and the Aosta Valley; there are anyway 732 thousand people (over 331 thousand households) in difficulty, i.e. who do not live according to the standards of the current society and who, in the most serious cases, fail to meet the basic needs of life.
(Figure 6.2.3)
The most fragile households
But who are the people forced to live in this discomfort? So far, social exclusion has been analysed in aggregated terms, but some categories are undoubtedly more vulnerable than others.
There is a slight disadvantage for women, whereas the effect of age in Veneto highlights a greater risk for children and the elderly, contrary to that which is observed at a national and European level, where the incidence follows a profile which decreases with age. The central range, corresponding with working age, is however the least vulnerable because it is protected by greater incomes from work.
More at risk are the people who live alone, especially if elderly, the families with dependent children, especially large families with three or more dependent children, and people who have low educational qualifications. Investment in education represents an effective strategy of contraction, so much so that the percent of people at risk of poverty or social exclusion is reduced significantly with the increase of qualification.
In Veneto and in the whole of Italy, living in a highly or averagely urbanised area does not determine significant differences in the diffusion of social exclusion, whereas those who live in poorly urbanised areas experience more difficult conditions, as they are more isolated and are not reached by all services.
The risk of poverty and social exclusion is frequently associated with housing deprivation: families living in housing discomfort, due to lack of space or the presence of structural defects of various kinds, usually have to face other difficulties and limitations in daily life.
Comparison at the European level shows that the most disadvantaged are the families with dependent children, especially if children are three or more, and the elderly who live alone. Furthermore, on average in Europe less disparity is felt among different types of households, as shown by the lowest variability of the indicator.
(Table 6.2.1)