The lack of jobs remains the biggest worry among Europeans. Inflation, crime and healthcare follow with a big gap in second, third and fifth place of general concerns. These are the findings of the Challenges of Europe survey, which has been carried out by GfK-Verein in eight countries every year since 2001. In 2005, Russia has been included for the first time as the ninth country covered by the survey.

Representative of around 500 million Europeans, a total of 11,200 respondents in Austria, France, Germany, Italy, the Netherlands, Poland, Spain, the UK and, for the first time this year, Russia answered the following open- ended question: ‘In your opinion, what are the most important issues to be tackled in ... (country concerned) (Abb.)?'

The number of issues indicated provides a clue to the pressures currently experienced by the different countries. Higher than the average of 2.0 issues indicated, the French respondents named 2.4 issues, the German respondents 2.1 issues and respondents in the UK also 2.1, while the Netherlands (1.8), and Spain (1.7) were below average. In a four-year comparison, the pressure resulting from problems in the country has increased in the UK, in particular, rising from 1.8 to 2.1. Fewer problems were mentioned in the Netherlands (down from 2.4 to 1.8), Austria (down from 2.4 to 2.0), Italy and Poland (both down from 2.3 to 2.0) and Spain (down from 2.0 to 1.7).

Unemployment by far most worrisome

Across the board, the issue most frequently referred to was unemployment. For 37 percent of all Europeans surveyed, the lack of jobs is an issue which needs to be addressed urgently. In the countries for which we have comparative data, there was a slight decrease of 2 percentage points compared with 2001. High figures were recorded for Germany (81 percent), Poland (63 percent) and France (58 percent), with an increase for France and Germany compared with 2001. In Poland, compared with 2001, the figure was down by 12 percentage points. Unemployment was only mentioned by 13 percent of Russians, 8 percent of Dutch and 4 percent of Brits. Austria, Spain and Italy represent the mid field. However, in a four-year comparison the trend in each country varies significantly: While the proportion in Italy dropped significantly from 47 to 38 percent and in Spain from 62 to 41, in Austria, the figure rocketed from 19 to 47 percent. There is a correlation between the level of concern and the trend in unemployment rather than between concern and the absolute unemployment figures. For example, at 10 percent, unemployment in Spain is currently approximately twice as high as in Austria. However, Spain has almost halved unemployment since 1996, whereas in Austria the trend indicates an increase in unemployment.

Inflation second most pressing

There is a clear gap between concerns regarding unemployment and the next most worrying factors, which for 20 percent of Europeans are prices and the diminishing purchasing power and which are seen as the second most pressing challenge in Europe. 32 percent of Russians see these as a top priority for action. The rate of inflation, at 11.7 percent still a double-digit figure in 2004, appears to be of less concern than the purchasing power of individuals and households which is causing anxiety among those receiving state benefits and those on low incomes. In the Western and Central European countries for which comparative data exists, figures have also increased from 12 to 15 percent in the period 2001 to 2005. In France (up from 17 to 29) and Italy (up from 4 to 25 percent) people are increasingly concerned despite low rates of inflation. Poland recorded a positive trend, with the proportion of those concerned decreasing from 30 to 9 percent. In the UK, where the rate of inflation stands at 3 percent, this factor proved of no concern to people.

42 out of 100 Brits indicated crime as their major concern, a marked rise compared with 16 percent in 2001. The survey was carried out prior to the recent terrorist attacks on London. Overall, crime is the third most worrying factor to Europeans (13 percent), with an above-average proportion citing this as their main worry in the Netherlands (26 percent) and France (16 percent). At 12 percent, Spain is not above average, however, 24 percent expressed specific concerns about terrorist activity. The figure has come down since 2001 when terrorist activity was the top concern in Spain (68 percent) and crime was also mentioned by far more respondents (20 percent). The figure has also clearly decreased in Italy from 40 percent in 2001 to 13 in 2005 and in Poland, from 21 to 6 percent. In Poland, anxiety relating to corruption is now more widespread (18 percent). The battle against crime has also become less significant in France, where the figure dropped from 35 percent in 2001 to 16.

Crime and healthcare top concerns in UK

In the UK, where crime is the No. 1 concern, healthcare is the second most worrying issue. In Europe overall, the issue of healthcare ranks in fourth place and is almost unchanged on 2001 at 12 percent. The assessment of the National Health system in the UK has been subject to strong fluctuations: in 2001, 25 percent showed concern, rising to 48 percent in 2002, followed by a drop to 18 percent by 2004. At 32 percent, there is currently an upward trend. Immigrants and asylum seekers rank in third place of the list of concerns among Brits (29 percent).

The pattern in the Netherlands is very similar, with crime (26 percent) taking the top spot and the issue of immigration and asylum seekers in third place (14 percent). Despite a rate of inflation of only 1.25 percent in 2004, in the Netherlands, the number two spot is occupied by the trend in purchasing power (18 percent) and not healthcare.

In Russia, respondents indicated housing/rent and public sector services as areas which should be given high priority (25 percent) after inflation. The third most cited problem is the pensions issue. This highlights that many Russians consider the current level of wealth as either tenuous or as providing much scope for improvement.