ABSTRACT In this paper three methods of relativizations are used: (1) we apply the conventional poverty approach: the poor are those whose income remains below 60 percent of the national equivalent disposable income, (2) we collapse nations together into one data pool and calculate a poverty line for the EU, and (3) we decompose nation states into smaller units representing the poorest and richest areas. Within-nation differences seem to be more pronounced than differences between nations. In the Nordic countries incomes between regions as well as between individuals are more evenly distributed and, consequently, the national means are more representative for the whole countries. Moreover, the Nordic cluster, together with central Europe, is robust against the method of comparison. The method affects the Mediterranean countries. The use of the European poverty line leads to poverty rates two to three times higher than analyses based on national data. The regional variation in these countries is the widest. For this reason, conclusions based on national means may be misleading and national means obscure more than they reveal. In societies with large socio-economic and regional variation in income, and consequently in consumption capacities, purchasing power parities implicitly assuming homogeneous consumption patterns over society may give a distorted picture of the price levels in the country in question.