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LATEST
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Living Standards Across the Union Climb but the East Still Trails

Sofia: Fresh figures from Eurostat put a hard number on a story that Europeans feel long before they read it in a table. Average output per person in the twenty-seven member states rose to 41,650 euros in 2025, up from 39,980 euros a year earlier, a gain of a little over four percent in current prices. It is the kind of headline that flatters the Union as a whole while quietly concealing how unevenly the money is spread.

Gross domestic product per capita is a blunt instrument. It divides everything an economy produces by the number of people living in it, ignoring who actually pockets the proceeds. Yet as a rough gauge of prosperity it remains the figure that finance ministries, ratings agencies and cohesion planners reach for first. A rising average tells them the bloc kept expanding even as the wider euro area flirted with contraction, and that nominal incomes outpaced the slow retreat of inflation over the year.

The more revealing part of the release lies beneath the average. The gap between the richest and poorest member states remains vast, and it narrows only in slow motion. Bulgaria and Romania continue to sit at the bottom of the ranking, their output per head a fraction of the levels recorded in Luxembourg, Ireland and the Nordic economies, whose numbers are inflated in turn by multinational accounting and small populations. For a citizen here, the promise of convergence that accompanied enlargement two decades ago is still a work in progress rather than a delivered result.

That matters for more than national pride. The Union channels hundreds of billions in cohesion funding precisely to lift the laggards toward the mean, and the per-capita ladder is the yardstick that decides which regions qualify. Territories below three-quarters of the EU average draw the heaviest support, so every revision to the figures redraws the map of who gets what. As negotiations over the next long-term budget sharpen, poorer capitals will point to these numbers to argue that the job is unfinished and the envelope must not shrink.

Economists caution against reading too much triumph into a single year. Part of the increase reflects price effects rather than extra goods and services, and purchasing power standards, which strip out cost-of-living differences, compress the rankings considerably. A salary that looks modest in nominal euros stretches further where rents and groceries are cheaper, which is why the convergence picture looks kinder when measured in what money actually buys.

Still, the direction of travel is upward, and the poorest economies have generally grown faster than the richest, closing the relative distance even as the absolute gap stays wide. Whether that pace is fast enough to satisfy voters who were promised catch-up is a political question the statistics cannot answer. What the numbers do establish is a baseline against which the next enlargement wave, and the budget built to fund it, will be judged.