Connect with us

Business

Minimum Wages in the EU Rise Faster Than Inflation, Boosting Real Incomes

Published

on

Brussels, Belgium – Minimum wages across the European Union (EU) and candidate countries have increased at a faster pace than inflation, leading to real wage growth for workers in most nations, according to the latest data from Eurostat. However, significant regional disparities remain in both nominal wages and purchasing power.

Minimum Wage Disparities Across Europe

As of January 2025, monthly gross minimum wages in the EU range from €551 in Bulgaria to €2,638 in Luxembourg. Among candidate countries, Moldova has the lowest minimum wage at €285.

The EU’s 22 countries with statutory minimum wages fall into three categories:

  • Group 1: Above €1,500 per month
    • Luxembourg (€2,638), Ireland (€2,282), Netherlands (€2,193), Germany (€2,161), Belgium (€2,070), and France (€1,802).
    • Notably, Germany overtook Belgium due to its latest wage increase.
  • Group 2: Between €1,000 and €1,500 per month
    • Spain (€1,323), Slovenia (€1,254), Poland (€1,091), Lithuania (€1,038), Portugal (€1,015), and Cyprus (€1,000).
    • This group has expanded significantly since July 2024, when it included only two countries.
  • Group 3: Below €1,000 per month
    • Includes 10 EU nations and all candidate countries.
    • Croatia (€970), Greece (€968), Malta (€961), Estonia (€886), Czechia (€826), Slovakia (€816), Romania (€814), Hungary (€707), and Bulgaria (€551) are in this category.
    • Among candidate nations, Turkey leads with €708, surpassing Hungary and Bulgaria.

Purchasing Power Adjustments Narrow Wage Gap

While nominal wages vary widely, the gap shrinks when adjusted for purchasing power standards (PPS), which accounts for cost-of-living differences.

  • In nominal terms, Luxembourg’s minimum wage is 4.8 times higher than Bulgaria’s.
  • In PPS terms, Germany ranks highest (€1,992), while Estonia has the lowest (€878), reducing the gap to 2.3 times.
  • Countries like Romania (17th to 9th) and Montenegro (18th to 12th) improve significantly in PPS rankings, while Ireland (2nd to 5th) and Estonia (14th to 21st) drop due to higher living costs.
See also  Alibaba Boosts AI Spending as It Unveils Most Powerful Model Yet

Inflation vs. Wage Growth: Winners and Losers

In most countries, minimum wage increases outpaced inflation, but four nations saw real wages decline:

  • Turkey was hit hardest, with inflation at 44.4%, while its minimum wage rose by only 30%.
  • Cyprus, Albania, and Belgium also experienced slight real-term declines.

Conversely, Montenegro led real wage growth, with a 25.9% wage hike against just 2.6% inflation, significantly boosting purchasing power. Other strong performers included Romania, Bulgaria, Croatia, and Lithuania.

EU Minimum Wage Directive Drives Up Pay

The EU Minimum Wage Directive aims to set statutory minimum wages at 60% of a country’s median wage. In 2022, only three EU nations met this threshold, but rising wages are now bringing more countries in line with the directive.

“The directive may play a role in driving substantial increases to minimum wages from now on,” wrote Christine Aumayr-Pintar and Carlos Vacas-Soriano of Eurofound.

With minimum wages continuing to rise, policymakers will be watching closely to see if the trend sustains real income growth across Europe.

Business

Uruguay Tops Global Retirement Ranking as Europe Dominates Top 10

Published

on

Uruguay has overtaken Portugal to become the world’s top retirement destination in a new global ranking, although Europe remains the strongest region overall with six countries among the top 10.

The 2026 retirement index by Global Citizen Solutions compares 46 retirement and passive-income residence programmes based on quality of life, travel freedom, access to citizenship, taxation, application procedures and costs.

Uruguay took first place after recording consistently strong results across all five categories, while Mauritius ranked second. Spain was third, followed by Costa Rica and Portugal. Latvia, Andorra, Italy, Greece and Malta completed the top 10.

The ranking found that Europe’s main advantages are its quality of life, strong passports and established routes to citizenship. Higher taxes, however, reduced the scores of several European programmes.

Quality of life carries the greatest weight in the index, followed by mobility and citizenship, taxation, application procedures and costs. The report said the priorities can vary considerably between retirees, and the gap between first and 10th place was less than four points.

Spain was the highest-ranked European destination and placed fifth globally for quality of life. Its retirement programme offers a relatively straightforward application process that can take up to eight months. However, Spain ranked last among the 46 programmes for taxation because of worldwide taxation, regional wealth taxes and the absence of a special tax regime for visa holders.

Portugal ranked second in Europe and fifth worldwide, down from first place in 2025. Its position was affected by changes to citizenship rules that increased the required residence period for most non-EU applicants from five to 10 years.

See also  Oil Markets Stabilise After Iran Deal, but Experts Warn Energy Supply Recovery Will Take Months

Portugal remains one of the more affordable major European options, with an income requirement of €920 a month. It also performs strongly for mobility, although processing can take as long as two years.

Latvia ranked third in Europe, offering processing times of two to four months and relatively low costs. Andorra scored particularly well for safety and environmental standards and ranked third globally for quality of life. Its income tax is capped at 10%, with no wealth or inheritance tax, but applicants must make a local investment of €1 million.

Italy and Greece ranked first and second globally for mobility and citizenship respectively. Greece offers tax options for retirees but requires monthly income of €3,500 under its relevant programme.

Outside Europe, the Americas performed strongly for affordability and taxation, while Mauritius was Africa’s highest-ranked destination. In the Middle East, the UAE ranked 19th overall and first for preferential tax regimes.

Income requirements vary widely. They range from less than €600 a month in Nicaragua to more than €9,000 in Bahrain. Citizenship timelines also differ, with some South American countries offering naturalisation after about two to three years, while Andorra requires 20 years.

The report said 24 programmes allow naturalisation within five years, while 17 offer it within six to 10 years.

Continue Reading

Business

Binance Faces EU Regulatory Scrutiny Over Continued Service to Customers

Published

on

European regulators are examining how Binance continues to serve customers in the European Union after the cryptocurrency exchange failed to obtain a licence under the bloc’s Markets in Crypto-Assets Regulation, according to a Financial Times report.

The scrutiny centres on Binance’s use of the “reverse solicitation” exemption, which allows companies based outside the EU to provide certain services to customers when those customers approach the company entirely on their own initiative.

Binance was expected to take steps to wind down its European operations after failing to secure a MiCA authorisation by the summer deadline. Under the rules, companies without the required licence were expected from July 1 to limit their activities to helping customers transfer or sell their existing crypto holdings.

The European Securities and Markets Authority and regulators in countries including France, Germany and Greece are examining Binance’s use of the exemption, the Financial Times reported, citing people familiar with the matter.

Some regulators have reportedly requested information from Binance and could consider enforcement measures, including fines, if they are not satisfied with the company’s responses. The review also extends to other cryptocurrency businesses using the same exemption.

ESMA told the Financial Times that reverse solicitation is intended to be a limited exception and should not be used to avoid MiCA requirements. The Dutch financial markets regulator AFM similarly said crypto asset service providers must meet specific requirements before relying on the exemption.

Binance’s local licences in countries including France, Spain and Poland lapsed under the new EU framework. Customers in some other EU markets are served through Binance’s Abu Dhabi entity, which has been regulated since December 2025.

See also  Alibaba Boosts AI Spending as It Unveils Most Powerful Model Yet

The exchange said its European operations remain compliant with applicable rules.

“In Europe, Binance remains committed to operating on a long-term, compliant basis under the EU’s Markets in Crypto-Assets Regulation. We are actively working toward becoming MiCA-authorised,” a Binance spokesperson told Euronews.

ESMA declined to comment on the specific case when contacted by Euronews. It said supervision, investigation and enforcement under MiCA are responsibilities of national authorities, while ESMA’s role includes promoting consistent supervision across EU markets through cooperation, information-sharing and guidance.

Any enforcement action against Binance would therefore need to be taken by the relevant national regulators rather than ESMA itself.

The latest scrutiny adds to Binance’s regulatory challenges in several major markets. In 2023, the company agreed to pay $4.3 billion in penalties in the United States after pleading guilty to criminal charges linked to money laundering and violations of US sanctions.

The outcome of the EU review could affect Binance’s ability to continue serving European customers while it seeks authorisation under MiCA. The exchange has said it intends to obtain the required licence and operate in the bloc on a long-term basis.

Continue Reading

Business

Air France-KLM and Lufthansa Submit Final Bids for TAP Stake

Published

on

Air France-KLM and Lufthansa submitted their final bids on Wednesday for a stake in Portuguese airline TAP Air Portugal, bringing the bidding stage of the privatisation process to an end and leaving the next decision with the Portuguese government.

The two airline groups are competing to acquire an initial 44.9% stake in TAP. Their final proposals are expected to include improvements to the binding offers submitted in July, according to Parpública, Portugal’s state shareholding manager.

Parpública said it will now prepare a report assessing the changes proposed by the two bidders. The report will examine the overall merits of the final offers before being sent to the government ministers responsible for finance and air transport.

Wednesday was the deadline established by the Portuguese government for the submission of the final proposals. Infrastructure and Housing Minister Miguel Pinto Luz said earlier this week that the government would have 15 days to take a position after receiving the bids.

The proposals will be assessed on financial and strategic commitments, including investment plans, fleet development, maintenance operations, sustainable aviation fuels and compliance with labour obligations.

Air France-KLM said it had submitted a final proposal for a shareholding of up to 49.9% in TAP, signalling its continued interest in expanding its position in the Portuguese airline.

Air France-KLM Chief Executive Benjamin Smith said the group had strengthened its proposal during the final bidding period and described it as a long-term strategic plan for TAP.

The group said its proposal would place Lisbon at the centre of its operations in Southern Europe and focus on expanding connectivity, creating jobs and generating economic value in Portugal.

See also  Turkey Emerges as Europe’s Most Ambitious Battery Storage Market

Lufthansa also said its final proposal was based on its experience developing network airlines and its plans to support TAP’s growth and competitiveness.

The German airline group said it aimed to help strengthen TAP’s position as Portugal’s national carrier while supporting its future development.

The privatisation process has included the possibility of negotiations to allow bidders to improve their proposals before a preferred investor is selected. The eventual transaction will still require several formal approvals.

The sale is expected to require approval by Portugal’s Council of Ministers, as well as clearance from European competition authorities before it can be completed.

The government is seeking to sell 44.9% of TAP initially, while a further 5% of the airline’s shares is reserved for employees. Any portion of that employee allocation that is not subscribed could subsequently be acquired by the investor selected by the government.

The final bids mark the latest stage in Portugal’s effort to bring a strategic airline investor into TAP following the company’s restructuring and return to financial stability. The government will now review the competing proposals before deciding on the next stage of the process.

Continue Reading

Trending