Bucharest is among the capitals of European Union countries where the minimum gross wage is not enough to cover the rent for a two-room apartment.
Bills for rent and utilities represent the largest category of expenses for European households, as shown by Euronews.
According to the most recent Eurostat figures, 23.6% of household expenditures in the EU are allocated to housing, water, electricity, gas, and other fuels. Rents have a particularly high share in large cities.
More importantly, rent is a significant burden for those earning the minimum wage, exceeding their monthly earnings in many European capitals.
According to an analysis by the European Trade Union Confederation (ETUC) based on EU data, the average cost of renting a two-room apartment in most EU capitals exceeds the minimum gross wage.
Only in five EU countries does monthly rent fall below the minimum wage. However, since both Eurostat and ETUC figures are based on minimum gross wages, the real burden on workers is likely even higher when considering net wages.
Prague and Lisbon, most affected by rent costs
People earning the minimum wage in the Czech capital suffer the most. In Prague, the average rent is 1,710 euros, while the country's minimum wage is 924 euros. This means that an amount equivalent to 185% of the minimum wage is needed to afford a two-room apartment.
Lisbon takes second place, with a ratio of 168%. In Portugal, the equivalent monthly minimum gross wage (paid over 14 months annually) is 1,073 euros, while the average rent in the capital is 1,710 euros.
The share of the minimum gross wage needed for rent also exceeds 150% in Budapest (159%), Bratislava (158%), Sofia (154%), Athens (153%), and Riga (151%).
This means that people earning the minimum wage should spend their entire salary on rent and still need more than half of an additional salary to cover it.
This ratio also exceeds 100%, indicating that not even the minimum gross wage is enough to cover rent in Valletta (143%), Paris (138%), Tallinn (131%), Madrid (125%), Bucharest (122%), Warsaw (117%), Dublin (113%), Ljubljana (105%), and Vilnius (105%).
For example, in Paris, the average rent for a two-room apartment is 2,523 euros, while the minimum wage in France is 1,823 euros. In Madrid, it is 1,721 euros compared to 1,381 euros.
Brussels and Berlin, best capitals for those earning the minimum wage
On the other hand, Brussels stands out as the best EU capital for those earning the minimum wage and being able to afford rent. Minimum gross wages cover 70% of the rent costs there. In Brussels, the average rent for a two-room apartment is 1,476 euros, while the minimum wage is 2,112 euros.
Berlin comes in second with the best price, at 76%. The share of the minimum gross wage needed for rent is 85% in Nicosia, 87% in Luxembourg, and 96% in The Hague.
"High housing costs and low wages push people into poverty and the economy towards a recession," said ETUC Secretary-General Esther Lynch.
"When we add the rising costs of energy and food, working people are forced to borrow, making saving for essential appliances replacement or a visit to the dentist impossible," she added.
Rent is more accessible at the country level than in capitals
Compared to capitals, country averages present a better picture. In many countries, the minimum gross wage is sufficient for rent. However, rent still represents a significantly higher share than the EU household average of 23.6% for housing and utilities.
In the 16 EU countries analyzed in this ETUC comparison, the share of the minimum gross wage needed to cover rent ranges from 33% in Poland to 61% in Malta.
In Poland, the minimum gross wage is 1,139 euros, while the average rent is 376 euros. France also fares better, with 1,823 euros compared to 695 euros. Greece can also be a good option for minimum wage workers outside Athens, with 1,027 euros compared to 408 euros.
In Spain, the minimum wage is 1,381 euros, while the average rent is 660 euros.