INCOME INEQUALITY IN THE COUNTRIES OF THE EUROPEAN UNION

The paper aimed to analyze income inequality in the EU-27 countries in the period 2014-2021 based on Eurostat data and methodology involving specific indicators. Dynamic analysis, regression equations, R-2, growth or decline rates, classifications, comparisons, and graphical and tabled illustration of the results were the main procedures for data processing. In the most member states it was noticed a reduction of disparities, grace to the measures taken by each country to improve income of the citizens by social transfers. In the Euro area, income level is higher than in EU-27 and income disparities are smaller. In 2021, the EU-27 median disposable income accounted for Euro 18,369 by +21.6% higher than in 2014. In the Euro area, it reached Euro 20,776 (+19.4%). The highest median disposable income exceeds Euro 25,000 in Luxemburg, Denmark, Netherlands, Ireland, Belgium, Sweden, Finland and Germany, while the lowest level is in Romania Euro 4,832. In 2021, Gini coefficient of equalized disposable income was 30.1 in the EU-27 and 30.5 in the Euro area, showing a slight decline of income inequality. While Lithuania and Latvia are the countries with the highest income disparity, Slovenia, Belgium and Czechia have a lower income inequality. Income by quantiles reached Euro 12,790 in the EU-27 and Euro 14,622 in the Euro area. Luxemburg, Ireland, Austria and Netherlands registered the highest income by quantiles, while Latvia, Croatia, Hungary, Bulgaria and Romania the lowest one. Income quintile share ratio S80/S20 for disposable income, reached 4.97 in the EU-27 and 5.02 in the Euro area. It increased in France, Italy, Latvia, Luxemburg, Malta, Netherlands and declined in all the other countries. Despite of a relative reduction in income inequality during the analyzed period, the process has to continue for ensuring the goal 10 of the 2030 Agenda and its Sustainable Development. For this reason, researchers and policy makers have to look for new strategies to improve income and increase the living standard of the population and assure the sustainable development of all the member states.