Greek households continue to pay a heavy price for the cost of living crisis, with the risk of poverty or social exclusion on the rise and Greece remaining in the second-worst position in the European Union. The energy crisis and high prices for essential goods are bringing the issue of purchasing power back to the forefront, at a time when European leaders are searching for answers to soaring energy costs — without a concrete joint support package yet in place.
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Cost of living and poverty: Greece’s poverty risk reaches 27.5% in 2025
The 2025 figures paint a stark picture of the difficulties facing a significant portion of the population in meeting everyday needs. According to Eurostat data, the share of people at risk of poverty or social exclusion in Greece rose to 27.5%, up from 26.9% in 2024 — an increase of 0.6 percentage points. In other words, more than one in four residents of the country now faces this risk.
Greece ranks second in the EU, behind only Bulgaria, where the corresponding rate stood at 29%. Romania comes third at 27.4%. This bleak picture stands in sharp contrast to the marginal improvement recorded at the European level, where the EU-wide rate edged down to 20.9% in 2025, from 21% the previous year.
The regions with the highest poverty rates — Peloponnese leads the way
Particularly alarming is the geographic distribution of poverty risk across Greece, with four regions ranking among the 24 EU regions where the relevant rate reached at least 31.5%. The worst-performing region is the Peloponnese, where the rate climbs to 38.1%. It is followed by the Ionian Islands at 35.7%, Central Macedonia at 33%, and Eastern Macedonia and Thrace at 31.6%.
The picture looks considerably different in Crete, where the rate drops to 18.2% — well below the national average — while Thessaly registers 30.5%. These disparities highlight that poverty risk is not evenly distributed across the country but varies significantly by region.
Regional inequalities take on even greater significance at a time when rising energy costs are affecting not only heating and electricity bills but also transportation and the prices of basic goods. For low-income households, every new price increase further erodes their ability to cover daily necessities.
At the EU level, 92.7 million people — representing 20.9% of the population — were at risk of poverty or social exclusion in 2025. Despite a slight overall decline, inequalities between European regions remain pronounced, with the heaviest burden concentrated primarily in southern and eastern Europe, as well as in the EU’s outermost regions.
Among the 24 regions where at least 31.5% of the population faces this risk are five regions in Spain, four in Greece, four in Bulgaria, four in Italy, three French overseas territories, and two in Romania.
The worst-performing region is French Guiana, with a rate of 54.8%. It is followed by Calabria in Italy at 45.3%, Sicily at 44%, the Spanish enclave of Melilla at 43.7%, and Réunion at 42.3%. At the other end of the spectrum, 24 EU regions recorded rates below 13%, underscoring the vast gap in living conditions and exposure to poverty risk across the bloc.
Greece’s deteriorating performance carries particular weight amid the new wave of energy market turbulence. Rising energy prices are feeding through to the broader economy, pushing up production costs, transportation expenses and consumer prices, while households are left managing higher expenditures on incomes that do not necessarily keep pace.
The issue was raised at the recent European Council summit, with EU leaders calling for the consideration of additional, temporary and targeted measures to address energy costs. However, this direction was not accompanied by an immediate decision on a new joint European subsidy package to provide relief to consumers.
Income growth in 2027: What the government’s economic team projects for poverty
In contrast to the deterioration documented by Eurostat, Greece’s economic policymakers are projecting an improvement in household incomes and a reduction in poverty through tax relief and income support measures planned for 2027. According to the draft budget submitted to Brussels, household disposable income is expected to increase by an average of €701 per year, or 4.6%, with the largest percentage gains recorded among lower-income groups.
The Ministry of National Economy and Finance estimates that, if the poverty threshold remains fixed at 2026 levels, the share of the population falling below it could decline by 2.2 percentage points. However, if the threshold is adjusted in line with rising incomes, the estimated reduction narrows to just 0.2 percentage points. The gap between these two scenarios underscores how critical it is not only for incomes to rise, but for them to maintain their real purchasing power in the face of persistently high prices.
