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Euronews
Servet Yanatma

Are you satisfied with your financial situation? European countries compared

The financial situation of a household is not only essential for maintaining a decent standard of living, but also plays a crucial role in overall life satisfaction, according to Eurostat, the EU’s official statistical office. 

EU statistics on income and living conditions (EU-SILC) reflect respondents’ overall assessment of their circumstances at the time of the survey. When evaluating their financial satisfaction, they take into account:

  • income adequacy

  • level of savings 

  • capacity to pay back debt and money owed 

  • ability to meet large emergency expenses 

  • level of assets for the entire household

So, to what extent are Europeans satisfied with their financial situation? Which countries report the highest and lowest levels of financial satisfaction? Is there a correlation between annual net earnings—both in nominal terms and in purchasing power standards—and satisfaction with financial status?

What countries are the most and least financially satisfied?

In 2022, on average, people in the EU rated their financial situation at 6.6 on a 0 to 10 scale according to Eurostat. On the scale, 0 means ‘not at all satisfied’ while 10 refers to ‘completely satisfied’.

Among 36 European countries—including EU member states, candidate countries, the UK, and EFTA countries—households in the Netherlands and Finland report the highest levels of financial satisfaction, both averaging 7.6.

Switzerland (7.5), Norway and Sweden (both 7.4) closely follow them. 

Five more countries also scored above 7 points: Austria (7.3), Iceland (7.2), and Belgium, Denmark, and the UK (7.1).

Romania (7), Germany, Ireland, Malta, and Luxembourg (all 6.8), as well as Czechia, Italy, and Slovenia (all 6.7), also ranked above the EU average in financial satisfaction.

Bulgaria records the lowest level of financial satisfaction at 4.6. Next in the ranking come five EU candidate countries: Turkey (4.7), Albania (4.8), Montenegro (4.9), North Macedonia (5.1), and Serbia (5.2). Greece (5.3) is close to this group. 

France and Spain fall below EU average

Among Europe’s five largest economies, Spain reports the lowest financial satisfaction at 6.3, followed closely by France at 6.4—both fall below the EU average of 6.6. Italy and Germany rank just above the EU average, while the UK shows the highest satisfaction among the group.

For the UK, Germany, Iceland, and Albania, the data refers to 2018 rather than 2022.

Geographical trends in financial satisfaction

These scores indicate clear regional patterns in financial satisfaction:

  • Northern European countries, particularly the Nordic states, report the highest levels of satisfaction.

  • Western European countries generally perform well, clustering between 6.8 and 7.6—well above the EU average of 6.6.

  • Results are mixed in Southern and Eastern Europe, while EU candidate countries in the Balkans record the lowest scores.

  • Two countries stand out as outliers: Romania (7), which ranks unexpectedly high, and Germany (6.8), which shows relatively low satisfaction despite its strong economy.

Financial satisfaction and net earnings: Is there a link?

Of course, financial satisfaction scores are survey-based and reflect people’s perceptions. There is extensive literature exploring the factors that explain satisfaction with one’s financial situation: well-being, overall life, or happiness. Several studies investigate the role of income and wealth, cost of living and housing, social protection, employment and job security, as well as inflation and economic stability in explaining satisfaction scores.

Euronews Business examined the correlation between financial satisfaction and annual net earnings, both in nominal terms and in purchasing power standards (PPS). In general, this means financial satisfaction tends to be higher where net earnings are higher.

About half of the differences (51%) in financial satisfaction across European countries can be explained by net earnings in euros. That suggests that income explains a lot, but not everything.

For example, not surprisingly, Turkey and Bulgaria, which ranked at the bottom in satisfaction, also recorded the lowest net earnings in 2022. 

Romania (€9,084 vs 7), Luxembourg (€46,885 vs 6.8), and Germany (€35,597 vs 6.8) emerge as significant outliers that do not follow the general trend.

About 55% of the differences in financial satisfaction across these countries can be explained by income adjusted for PPS, which is slightly higher than nominal earnings. 

Besides Romania and Luxembourg, Greece (19,250 PPS vs 5.3) and Ireland (29,700 PPS vs 6.8) also emerge as outliers. While households in Romania report higher satisfaction despite lower earnings in PPS, the opposite is true for the other three countries. 

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