Almost Half of Europeans Fear They Will Not Be Able to Pay Bills

Almost Half of Europeans Fear They Will Not Be Able to Pay Bills

Covering costs such as mortgage repayments and commuting to work worries 48 percent of respondents, while 37 percent of them are using savings to make ends meet, the Ipsos survey revealed.

Inflation in the EU has strengthened after the pandemic due to a sudden recovery in demand that supply could not keep up with. In 2022, price growth accelerated further, driven by a surge in production, food, and energy costs spurred by the Russian invasion of Ukraine and Western sanctions on Moscow.

To tame inflation, the European Central Bank (ECB) changed its monetary policy direction and raised interest rates, causing 10 percent of respondents with variable interest rate contracts to now pay higher interest on their mortgages.

The spike in energy prices has affected the standard of living for citizens in the EU, and 71 percent of respondents are trying to reduce consumption, while 28 percent have changed their mode of transportation.

Ipsos conducted the survey in October and November of last year on behalf of the European Commission, with a sample of one thousand respondents per country, including 27 EU countries, Iceland, and Norway.

Croatia Below EU Average

In Croatia, 16 percent of respondents said they were forced to dip into savings to cope with higher living costs, which is the lowest proportion among the countries surveyed.

Only three percent of respondents in Croatia reported that their mortgage payments had increased in the past six months due to variable interest rates, and 16 percent fear they will have repayment issues.

At the European level, 10 percent of citizens are currently paying higher mortgage payments, and 19 percent fear difficulties with repayment.

Seven percent of respondents at the European level have applied for a new loan or credit card, with the same proportion recorded in Croatia.

Slightly more than a third of respondents in Croatia, 37 percent, fear they will not be able to pay their bills in the next six months, and the same percentage is unsure whether they can afford their favorite food products.

Forty percent fear they will not be able to afford a summer vacation, and 20 percent are concerned about repaying debts from loans and credit cards and the cost of commuting to work.