The EU-Europe of the payment­ incapacity

Inflationary pressures are also expected to fall as a result of the €200 billion “defensive umbrella” designed to ease the burden on citizens and companies with regard to payments for electricity and gas from the spring. Data from Eurostat shows that already in 2020, more than a third of German households did not have enough money to settle unexpected payments.

With a share of around 38 percent, Germany is thus in the top third in an EU comparison, as the above Statista graphic illustrates. There are even more households with payment difficulties, particularly in Southeastern and Eastern Europe. Greece is at the top of the ranking. Here, around half of all households were unable to make potential additional payments in 2020, and the proportion was also almost 50% in Croatia and Romania. Some neighboring German countries fare much better. In the Netherlands and Austria, for example, the corresponding rate was only 19% and 18%.

A closer look at the data reveals that households with dependent children in particular are potentially more likely to run into payment difficulties. On average in the EU, 32% of households without children fell into the corresponding pattern, while the figure for households with children was 34% overall. If we isolate single-parent households, the rate even reaches 57%.

In Ireland, Greece, and Cyprus, more than 70% of all single-parent households fall into this category. However, one limitation must be noted when analyzing the data: According to Eurostat, the indicator refers to household assets; income and expenditure were not considered here. Accordingly, the values reflect financial security rather than income levels. However, this does not make the values any better but highlights the lack of reserves that many people have for crisis situations.