How has the cost of living changed in France, Italy, Spain and Portugal? | Interactive News
Student Protests in France Continue for Second Month, Spark Demonstrations Across Europe
Student protests in France have entered their second month, escalating into a wave of demonstrations across various European nations. What began in September as student-led protests against overcrowded classrooms and teacher shortages has expanded to encompass broader grievances regarding the cost of living and proposed cuts to public services.
Demonstrators have taken to the streets in Albania, Belgium, Greece, Italy, Portugal, and Spain, voicing concerns over a lack of affordable housing, rising costs, and inadequate public services. Many young people express a growing skepticism about their future financial prospects compared to those of their parents.
Leaders contending with this unrest include French President Emmanuel Macron, Italy’s Prime Minister Giorgia Meloni, Spain’s Prime Minister Pedro Sanchez, and Portugal’s Prime Minister Luis Montenegro. While representing a spectrum of political ideologies—Sanchez from the left, Meloni from the right, and Macron and Montenegro as centrists—they all face mounting pressure due to escalating living costs.
To illustrate the challenges faced by today’s youth, a comparison of financial conditions in France, Italy, Spain, and Portugal over the past 26 years highlights significant changes in prices, wages, housing, and education since the leaders were in their twenties, similar to many of the demonstrators opposing them.
Rising Costs
According to Eurostat, the European Union’s statistics agency, everyday expenses for items such as food, energy, transport, and bills have surged between 59 and 78 percent since 2000 in these countries. Spain experienced the most significant increase at 78 percent, followed by Portugal (71 percent), Italy (68 percent), and France (59 percent). Consequently, a basket of goods that cost 100 euros ($112) in 2000 now costs approximately 178 euros ($200) in Spain, 171 euros ($192) in Portugal, 168 euros ($188) in Italy, and 159 euros ($178) in France.
Average prices have generally risen by about 2 percent annually. However, a sharp inflation surge in 2022 saw annual rates peak at 8.7 percent in Italy, 8.3 percent in Spain, 8.1 percent in Portugal, and 5.9 percent in France, the highest levels recorded since at least 2000. This spike was largely driven by soaring energy costs following Russia’s invasion of Ukraine in February 2022. As of October 2022, energy prices across the eurozone were nearly 42 percent higher than the previous year, with food prices also experiencing considerable increases.
From 2021 to 2023, prices in these countries rose by 12 to 15 percent, while wages struggled to keep pace. As inflation eases, it is noteworthy that prices do not typically recede, leaving many households continuing to feel financial strain.
Changes in Salaries
When adjusted for inflation, the average full-time wage in Italy is projected to have decreased by nearly 5 percent between 2000 and 2025. Conversely, real wages have increased by 7 percent in Spain, 11 percent in France, and 20 percent in Portugal during the same timeframe, according to OECD data adjusted with Eurostat’s price index.
In Spain, most new employment opportunities have been concentrated in tourism and services, often characterized by seasonality and low pay, according to Madrid-based journalist Jaime Velazquez. Julius Fintelmann, co-founder and editor-in-chief of The European Correspondent, noted that changing demographics in society are limiting opportunities for younger workers, contributing to a widening pay gap between older and younger workers across high-income nations.
Housing Affordability
Housing affordability has deteriorated since 2000 across France, Italy, Spain, and Portugal, as indicated by the OECD’s price-to-income ratio. This ratio measures how home prices have shifted relative to incomes; an increase suggests decreasing affordability.
Spain has experienced the most significant change, with its price-to-income ratio climbing 56 percent since 2000, even after a notable decline following the 2008 financial crisis. In France, the ratio is 39 percent higher than in 2000, although it has slightly decreased since peaking in 2022. Italy stands as an exception, with home prices broadly aligning with incomes, resulting in only a 5 percent increase in the ratio since 2000. Conversely, Portugal, which experienced a steady decrease in affordability for 15 years post-2000, has seen the ratio rise by 67 percent since 2015.
Education Funding Trends
Protests in France have primarily centered around educational issues, including overcrowded classrooms and teacher shortages. Demonstrators in Belgium and Albania have also raised concerns regarding the rising costs of education and access to universities.
As per the latest Eurostat data, public spending on education in France has fallen to 5.1 percent of its gross domestic product (GDP), down from 5.6 percent in 2000. Italy’s expenditure is 4.4 percent of GDP compared to 4 percent in 2024, while Spain has maintained its education spending at 4.1 percent since 2000. Portugal’s investment has decreased from 4.8 percent in 2000 to 4.3 percent in 2024.
