In this article, we will reveal the city with the highest cost of living in Europe. If you wish to look at our detailed rankings, you can go to the 20 Cities with the Highest Cost of Living in Europe.
According to a European Parliament Eurobarometer survey, the rising cost of living is a major concern across Europe, with a whopping 93% of Europeans worried. High taxes affecting housing, energy, and daily expenses are forcing people to make significant adjustments to their budgets.
The rising inflation and cost-of-living crisis in several European countries can be attributed to various factors, including monetary policies and geopolitical events like Russia’s invasion of Ukraine. Government intervention in the economy, such as burdensome regulations and excessive taxation, is also contributing to high consumer prices.
One sector significantly impacted by these economic pressures is transportation. According to a 2022 report by the World Economic Forum, Europeans pay some of the highest public transport fares globally. Switzerland tops the list with an average monthly cost of $46 for local and regional connections. Nordic countries like Denmark and Sweden follow closely behind, with average monthly fares exceeding $40. A 2023 report by Greenpeace reinforces this trend, highlighting that many European countries lack affordable public transport options compared to other parts of the world. Moreover, an average 11% tax on public transport tickets further increases costs, adding to the financial burden on households.
Despite these challenges, public transportation remains essential in Europe. Europe’s public transportation market is projected to expand at a compound annual growth rate (CAGR) of 4.9% between 2022 and 2028 due to strong demand by locals and tourists. Major players in the market include Alstom SA (EPA:ALO), Mobico Group Plc (LON:MCG), and ComfortDelGro Corporation Limited (SGX:C52).
Alstom SA (EPA:ALO) is a French company involved in designing and building trains, trams, and other rail equipment for passengers and cargo. It operates in over 60 countries and has left its mark on major city transportation systems worldwide. The company recently announced a goal to lower train energy consumption by 25% by 2025, building on their impressive 23.4% reduction already achieved.
Mobico Group Plc (LON:MCG), a leading international shared mobility provider, has a strong presence across Europe. It operates transportation services through subsidiaries like ALSA across 11 countries, with some international coach services reaching even further. In 2023, the company announced the acquisition of 43 new contracts totaling over £1 billion in value. Mobico Group Plc (LON:MCG) expects to record an adjusted operating profit in the range of £185 million to £205 million in 2024.
ComfortDelGro Corporation Limited (SGX:C52) is a Singapore-based land transport giant with a significant presence in Europe. The company’s operations span across six European countries: the United Kingdom, France, Spain, Portugal, Greece, and the Netherlands. ComfortDelGro Corporation Limited (SGX:C52) partners with airlines, ground handlers, train operators, and companies to manage passenger disruptions caused by flight cancellations, delays, or other unforeseen circumstances. The company also owns and operates taxi fleets and private hire vehicles in several European cities.
City with the Highest Cost of Living in Europe
1. Lucerne, Switzerland
Cost of Living Index: 111.2
Lucerne ranks first on our list of 20 cities with the highest cost of living in Europe. The average monthly expenses for a single person in Lucerne amount to 1,653.6 Fr., excluding rent. This makes Lucerne around 11.2% more expensive to live in than New York. To maintain a reasonable standard of living and cover all expenses, one would need to spend at least 7,500.0 Fr. per month in Lucerne.
Discover which city almost beat Lucerne for the number one spot. You can see the rest of the rankings here.
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Disclosure: None. This article is originally published at Insider Monkey.