12 European Countries with the Best Quality of Life

Published on November 20, 2023 at 7:48 am by Meerub Anjum in Business, Economy, Industries, Lists, News

In this article, we will look into the 12 European countries with the best quality of life. If you want to skip our detailed analysis, you can go directly to the 5 European Countries with the Best Quality of Life.

According to WHO’s definition of quality of life, “Quality of life is a subjective evaluation of one’s perception of their reality relative to their goals as observed through the lens of their culture and value system.” When we talk about the quality of life in a country or a region, it refers to the multifaceted construct that captures the well-being of people in that region, encompassing the aspects of social well-being, security, economic liberty, health, education, environment, equal rights, safer cities, economic well-being, freedom, effective governance and autonomy in decision-making.

Quality of Life in Europe

Europe is a rich and diverse continent, with many countries in the region offering the highest quality of life. The high standard of living also contributes to the overall well-being and happiness of the countries in the region. Countries in Europe are counted among the happiest countries in the world and are also dominant among the top countries with the best quality of life in the world.

Over 83 cities in Europe were surveyed by the European Commission in 2019. The survey captured people’s experience with public service, safety, amenities such as health, education, public transport, and overall social well-being among others. According to the report, 9 out of 10 residents were satisfied living in European cities in 2019. In the Eastern region, most people reported that they observed an improvement in the quality of life over the past five years. The majority considered their cities good for immigrants, families, and the elderly. The survey also covered employment and ease of finding a job. It revealed that the majority believed that it was easier to find jobs in Western Europe. Transport services are another aspect that can be an indicator of the quality of life. Around 75% reported that they were satisfied with the public transport. However, cities considered for the survey in countries such as Albania, Italy, Cyprus, North Macedonia, and Serbia, reported that less than half of the residents were satisfied with the public transport. 4 out of 5 city residents revealed that they are satisfied with the public services in the region. These findings can help the policymakers and government to recognize the areas that need attention, and further enhance the quality of life in the region.

Economy and Quality of Life

According to the IMF, Europe reports a GDP of $25.44 trillion and a GDP growth of 1% as of 2023. The GDP per capita in the region is $34,710. The region has experienced slow growth over the recent years but it is expected to rebound at a higher pace in 2024. Economic growth of a region directly impacts the quality of life of its residents. A good economy means a higher employment rate, high incomes, financial security, and increased investments in public services and infrastructure by the government.

Key Players in the European Market

Some of the major players that are contributing to Europe’s market growth include Accenture plc (NYSE:ACN), AstraZeneca PLC (NASDAQ:AZN), SAP SE (NYSE:SAP), and Unilever PLC (NYSE:UL).

Accenture plc (NYSE:ACN) is a leading European company specializing in information technology services and consultancy. As of November 10, Accenture plc (NYSE:ACN) has a market cap of $199.16 billion. On October 31. the company announced the acquisition of 6point6, a UK-based company specializing in cloud, data, and cybersecurity. The goal of the acquisition is to enhance Accenture plc’s (NYSE:ACN) capabilities to offer support to the commercial and public sectors towards digital transformation, especially in the critical areas of central government, defense and security, and financial services.

Talking about the company’s efforts to expand government transformation capabilities in the UK, Ashish Goel, Managing Director of Accenture Health and Public Service in the U.K. and Ireland said:

“Defense, public safety, and national security are becoming increasingly prioritized by the U.K. government. In just over a decade, 6point6 has leveraged its experienced leadership team and key accreditations to generate strong relationships across these sectors which, alongside Accenture’s capabilities, adds to our ability to deliver truly differentiated services to clients.”

AstraZeneca PLC (NASDAQ:AZN) is a European healthcare company leading the market. As of November 10, it has a market cap of $199.16 billion. On November 9, the company announced that it had licensed ECC5004 from Eccogene, an innovative drug discovery company. ECC5004 is an investigational oral GLP-1RA molecule that has applications in the treatment of cardiometabolic conditions and obesity. The molecule has completed its Phase 1 trial and demonstrated a differentiating clinical profile, exhibiting promising tolerability and encouraging glucose and body weight reduction. AstraZeneca PLC (NASDAQ:AZN) will be paying $185 million to Eccogene upfront and up to $1.825 billion in royalties.

SAP SE (NYSE:SAP) is a German multinational software company helping European businesses to be more efficient and productive. On October 25, the company announced new generative AI-assisted capabilities for its SAP Customer Experience portfolio, including SAP’s natural-language generative AI copilot Joule. The new capabilities will aid businesses in automating time-consuming tasks and operations. It will also help them analyze data quickly to achieve valuable insights for an improved and efficient experience for customers. The new capabilities include tailored use cases for commerce, sales, customer service, and marketing teams.

Unilever PLC (NYSE:UL) is a leading multinational company in the world, supporting the social and economic development in Europe. On November 3, the company announced that it would be working for the youth empowerment of 10 million people with essential employment skills by 2030. The extensive program will help improve the skill set of the youth while providing them with employment opportunities. Unilever PLC (NYSE:UL) believes that this investment would be beneficial for global economic growth and development as the youth has the potential to contribute $6.5 trillion to the GDP by 2030, according to the WEF.

Now that we have talked about the quality of life in Europe and discussed prominent stocks in the European market, let’s look at the 12 European countries with the best quality of life.

12 European Countries with the Best Quality of Life

Methodology

To rank the 12 European countries with the best quality of life, we considered three metrics: Human Development Index (HDI), Economic Freedom Index (EFI), and Government Effectiveness rating.

HDI estimates factors such as life expectancy, education, and a decent standard of living. We obtained the most recent data available for HDI of countries from UNDP. The second metric for our rating is EFI obtained from the Heritage Foundation. EFI is an annual rating that measures the degree of economic freedom in a country, utilizing a total of 10 indicators. Then, the final metric we utilized is the Government Effectiveness rating, which we obtained from the World Bank’s World Governance Indicator Database. The Government Effectiveness rating measures the quality of public services, the degree to which the government can deliver on its promises, and the quality of its bureaucracy. The metric is also a key determinant in measuring economic growth.

To identify the European countries with the best quality of life, we first shortlisted the top 30 countries based on their HDI as of 2021. We prioritized HDI as our initial screening tool as it provides us with an insight into human development, taking into account the overall life expectancy and amenities available to the residents of a country, and is related to the quality of life directly as stated by the WHO.

Then, we utilized our other two metrics to narrow down our list further. We allocated equal weights to both our indicators and calculated a final score out of 100. Then, we refined our list to the top 12 countries based on their final score and ranked them in ascending order of the calculated score.

12 European Countries with the Best Quality of Life

12. United Kingdom

Human Development Index (2021): 0.929

Government Effectiveness (2022): 85.85

Economic Freedom Index (2023): 69.90

Insider Monkey Rating: 77.87 out of 100

The United Kingdom is ranked among the 12 European countries with the best quality of life. The United Kingdom reported an HDI of 0.929 as of 2021. According to the World Bank, the United Kingdom reported a Government Effectiveness rating of 85.85%. The Economic Freedom Index rating of the county is 69.90 as of 2023.

Accenture plc (NYSE:ACN), AstraZeneca PLC (NASDAQ:AZN), SAP SE (NYSE:SAP), and Unilever PLC (NYSE:UL) are some of the major stocks in the European market.

11. Germany

Human Development Index (2021): 0.942

Government Effectiveness (2022): 88.21

Economic Freedom Index (2023): 73.70

Insider Monkey Rating: 80.95 out of 100

Germany is ranked 11th on our list with an HDI of 0.942 as of 2021. According to the World Bank, Germany reported a Government Effectiveness rating of 88.21%. The Economic Freedom Index rating of the county is 73.70 as of 2023.

10. Austria

Human Development Index (2021): 0.916

Government Effectiveness (2022): 91.51

Economic Freedom Index (2023): 71.10

Insider Monkey Rating: 81.30 out of 100

Austria is ranked 10th on our list, reporting an HDI of 0.916 as of 2021. According to the World Bank, Austria reported a Government Effectiveness rating of 91.51%. The Economic Freedom Index rating of the county is 71.10 as of 2023.

9. Iceland

Human Development Index (2021): 0.959

Government Effectiveness (2022): 93.87

Economic Freedom Index (2023): 72.20

Insider Monkey Rating: 83.03 out of 100

Iceland is a Nordic island country in Europe. As of 2021, Iceland reported an HDI of 0.959. According to the World Bank, Iceland reported a Government Effectiveness rating of 93.87%. The Economic Freedom Index rating of the county is 72.20 as of 2023.

8. Estonia

Human Development Index (2021): 0.890

Government Effectiveness (2022): 89.62

Economic Freedom Index (2023): 78.60

Insider Monkey Rating: 84.11 out of 100

Estonia is ranked among the European countries with the best quality of life. Estonia reported an HDI of 0.890 as of 2021. According to the World Bank, Estonia reported a Government Effectiveness rating of 89.62%. The Economic Freedom Index rating of the county is 78.60 as of 2023.

7. Sweden

Human Development Index (2021): 0.947

Government Effectiveness (2022): 94.81

Economic Freedom Index (2023): 77.50

Insider Monkey Rating: 86.16 out of 100

Sweden is ranked 7th on our list, reporting an HDI of 0.947 as of 2021. According to the World Bank, Sweden reported a Government Effectiveness rating of 94.81%. The Economic Freedom Index rating of the county is 77.50 as of 2023.

6. Finland

Human Development Index (2021): 0.940

Government Effectiveness (2022): 96.70

Economic Freedom Index (2023): 77.10

Insider Monkey Rating: 86.90 out of 100

Finland is ranked among the European countries with the best quality of life. As of 2021, Finland reported an HDI of 0.940. According to the World Bank, Finland reported a Government Effectiveness rating of 96.70%. The Economic Freedom Index rating of the county is 77.10 as of 2023.

Investors looking to increase their exposure to the European market can research stocks including Accenture plc (NYSE:ACN), AstraZeneca PLC (NASDAQ:AZN), SAP SE (NYSE:SAP), and Unilever PLC (NYSE:UL).

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