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ECONOMY

IN NUMBERS: The ‘worrying’ scale of poverty in France in 2020

How many poor people are there in France and what does 'poor' even mean today? A new report has shed light on the changing face of France's most deprived groups.

IN NUMBERS: The 'worrying' scale of poverty in France in 2020
Volunteers of the charity 'Les Restos du Coeur' distribute food in Toulouse, southern France, on November 24th, 2020. The organisation expects 1 million beneficiaries this year for the winter season,

Published on Thursday by l'Observatoire des inégalités (Observatory for inequalities), the report Poverty in France 2020-2021 drew a sombre picture of situation in France.

“France remains one of the best social models in the world that protects its poor better than most other rich countries,” the authors wrote, before adding “that does not mean that the situation is not worrying.”

The report was published to, according to the authors, set the scene of the situation before the real impact of the Covid-19 pandemic hit.

“We will pay the damages, by an awaited and devastating progression of unemployment,” they said.

Young people were in an especially concerning situation, they said, outlining the under-30s as the biggest losers of the looming social and economic crisis.

The data in the report come from France's national research institute Insee. Some of them date back to 2018, due to a lack of newer numbers.
 

Here are some of the key numbers revealed in the report.

€885 – The poverty threshold the Observatory operates with. Most public institutions use €900. That means that anyone with a monthly income averaging less than €900 after taxes is regarded as poor.

In comparison, France’s minimum wage is €1,219 net. The Observatory chose to use €885 because it allowed them to “focus on the populations struggling the most”

REVEALED: Where in France has the lowest cost of living?

5.3 million – the number of people in France living on less than €885 per month on average in 2018. In comparison the number of people living on less than €900 per month on average was nearly the double, 9 million. 

The remaining numbers are calculated based on the Observatory's poverty threshold of €885 per month.

8.3 percent – the percentage of poor people in France, or more than 5 million people out of a population of 67 million.

According to Luis Maurin, President and Director of the Observatory, France's poverty level is low compared to many other European countries. “But it’s still 5 million people who live with very little, with incomes that are very different from the rest of society,” he said in a video published on their website (clip below).

This number is expected to rise in the months to come due to the negative impact from the Covid-19 health crisis on the economy.

0.4 percent – the rate of which poverty in France grew between 2013-2018. That means that back in 2013, 7.9 percent of France’s population was poor compared to 8.3 percent now. “It’s not an explosion, but it still represents 350,000 additional poor people,” Maurin said.

30 – half of France's poor were below 30 years old. Young people were those the most impacted by poverty at the time the statistics were collected and the report have outlined them as the biggest future losers of the economic downturn caused by Covid-19. 

12.5 percent – the percentage of all 18 to 25-year-olds  below the poverty threshold, a number that has been growing for years and is expected to grow in the future.

8.2 percent – the percentage of 18 to 25-year-olds who lived below the poverty threshold back in 2002.

5.5 million – the number of people in France who received food aid in 2017.

56 percent – the percentage of the French population who said the government is not doing enough to help the poorest groups of the population.

9 percent – the percentage of the French population who said the government is doing too much.

 

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ECONOMY

Sweden’s new right-wing govt slashes development aid

Sweden, one of the world's biggest international donors, is planning drastic aid cuts in the coming years, the country's new right-wing government said in its budget bill presented on Tuesday.

Sweden's new right-wing govt slashes development aid

Prime Minister Ulf Kristersson’s government said it planned to reduce the country’s international aid by 7.3 billion kronor ($673 million) in 2023, and by another 2.2 billion kronor in 2024.

That is around a 15-percent reduction from what had been planned by the previous left-wing government and means Sweden will abandon its foreign aid target of 1 percent of gross national income.

International aid for refugees will be capped at a maximum of eight percent of its aid, and will also be reduced.

According to the specialised site Donor Tracker, Sweden was the world’s eighth-biggest international aid donor in terms of absolute value last year, and the third-biggest in proportion to the size of its economy, donating 0.92 percent of its gross national income, behind Luxembourg and Norway.

The new government, which is backed for the first time by the anti-immigration Sweden Democrats, had announced in its government programme last month that it would be cutting foreign aid.

Since 1975, Stockholm has gone further than the UN’s recommendation of donating at least 0.7 percent of its wealth to development aid.

Despite its growth forecast being revised downwards — the economy is expected to shrink by 0.4 percent next year and grow by 2 percent in 2024 — the 2023 budget forecasts a surplus of 0.7 percent of gross domestic product.

It calls for an additional 40 billion kronor in spending, with rising envelopes for crime fighting and the building of new nuclear reactors, as well as a reduction in taxes on petrol and an increase in the defence budget.

The new government is a minority coalition made up of Kristersson’s conservative Moderates, the Christian Democrats and the Liberal party, backed in parliament by their key ally the Sweden Democrats to give them a majority.

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