Eurostat's 2024 survey, relating to the at-risk-of-poverty rate, reveals that as many as 20.3 percent of Croatia's citizens are in this zone of income inequality, which is significantly higher than the European average. Within the country itself, the gap between the richest and poorest region has never been more pronounced.

The European statistical office, Eurostat, recently published data that very clearly outline the economic differences within Europe. The key indicator being analyzed is the at-risk-of-poverty rate. This indicator records the share of people whose disposable income, after all social transfers, is less than 60 percent of the national median income.

According to the latest data, across the entire European Union (EU-27) in 2024, 16.2 percent of people were at risk of poverty, or seventy-two million one hundred thousand citizens. Although the European average is stable, the situation in the Republic of Croatia deviates significantly, since as many as 20.3 percent of the population here faces this risk, which is noticeably above the Union average.

It is important to emphasize that this refers exclusively to the at-risk-of-poverty indicator, which is primarily a monetary measure and relates to the level of income. This should not be confused with the broader, more comprehensive indicator of 'risk of poverty or social exclusion' (AROPE), which is significantly higher at the Union level and reaches 21.0 percent. The difference is crucial because this broader indicator, in addition to low income, also includes people who may have somewhat higher earnings but suffer severe material deprivation, such as the inability to pay unexpected expenses, adequate heating, or one week of annual vacation, as well as those living in households where very little work is done. Therefore, the figure of 72.1 million citizens refers strictly to those with low incomes, while the actual number of people in a difficult social situation is in fact even higher when these additional life criteria are also included.

The Croatian picture: Zagreb as an exception, Pannonian Croatia in a difficult position

When data on the risk of poverty are viewed at the regional level (NUTS 2), Croatia's picture becomes extremely difficult. The country is divided into four statistical regions, and the differences among them best show the actual degree of inequality among our citizens.

The greatest financial danger, that is, the highest risk of poverty, threatens the residents of Pannonian Croatia, where the rate reached as much as 29.7 percent, meaning that almost every third resident of that region is at risk of living with income significantly lower than the national average. A somewhat better situation, but still above the national average, is present in Adriatic Croatia where that rate was 21.2 percent, while Northern Croatia managed to remain below the national average with 17.4 percent of citizens at risk.

On the other hand, the City of Zagreb represents a truly prosperous exception within the country. With an at-risk-of-poverty rate of only 9.7 percent, the capital ranks among the regions with the lowest risk of poverty in the entire European Union. While Zagreb, with this result, approaches those parts of Europe where the risk of poverty is lowest, Pannonian Croatia, unfortunately, with a share close to thirty percent, enters the group of European regions with the most alarming social challenges.

Comparison with neighbors and developed member states: Where does Croatia stand?

For a deeper context of the domestic situation, it is necessary to look at how Croatia stands in comparison with more developed Union member states and immediate neighbors, using the most precise available data for 2024.

For example, Germany and Austria, the countries to which most Croatian workers emigrated in search of a better standard of living, record significantly lower rates. Germany has a national rate of about 15.5 percent, while Austria is even more favorable, with a rate of about 14.3 percent. Regional differences exist there as well, but as a rule they are less drastic than in Croatia.

Even more relevant is the comparison with Slovenia, which, from a similar economic environment, managed to achieve a national rate of 13.2 percent. This difference, amounting to as much as seven percentage points in Slovenia's favor, clearly shows that, despite membership in the European Union, Croatia still faces structural problems that in the long term keep a large part of the population in the zone of income inequality.

Extremes in the European Union and why some regions are an exception

The danger of poverty is not uniformly distributed even at the level of the entire European Union, which is best seen in the regional extremes. The worst situation was recorded in the French overseas region of Guyane, where more than half of the people, more precisely 53.3 percent, live below the at-risk-of-poverty threshold, followed by the Spanish enclave Ciudad de Melilla with 41.4 percent and the Italian region of Calabria with 37.2 percent.

In contrast, some regions have an exceptionally low risk of poverty, such as the Romanian region Bucureşti-Ilfov with an exceptionally low 3.7 percent, ahead of the Belgian region Provincie Oost-Vlaanderen with 5.4 percent.

The reason for such low rates, especially in cases like Bucharest, often lies in the fact that these are isolated, strong economic centers that attract highly educated experts and capital. Since their incomes are compared with the national poverty threshold (which is lower because of rural and poorer parts of the country), residents of metropolises such as Bucharest or Zagreb very rarely fall below that line, although this does not mean that the entire country is wealthy. These are, therefore, island regions of prosperity.

What do these data mean for Croatia?

Eurostat's data send a clear signal: strong economic growth in the country is not evenly distributed. The at-risk-of-poverty rate is a direct measure of income inequality.

And while regions like Zagreb pull up the national average, areas like Pannonian Croatia suffer from a lack of investment, poor demographic trends, and weaker economic activity. Eurostat's figures are not just dry statistics, but a serious warning to policymakers that social policy and regional development must be a priority in order to prevent the further deepening of the country's economic and social divide.