Deutsche Bundesbank: The Germans are Poorer than the Italians and Spaniards
01 April, 2013
Net assets of German households are on average much lower than Italian or Spanish ones and the country is faced with serious impacts of the economic crisis. This startling conclusion is reached by the German central bank. Germany, the driver of the European economy.
The main reason for this conclusion is the fact that the Germans own significantly less real estate than Southern Europeans.
According to the Bundesbank, the median household net private property in Germany is € 51,400, while in neighboring France it is € 113,500, in Italy € 163,900 and in Spain , plagued by high unemployment rates, even 178,300 Euros.
While the average Spanish household has a net worth of 285,800 Euros and the average Austrian household 265,000 Euros, German households come in at 195,200 Euros.
“Most households in Germany – nationwide 73 percent – have net assets level ‘below average’,” says the Central Bank’s study. While in Germany 44 per cent of households own a house or an apartment, in Italy it is over 68 percent and in Spain nearly 83 percent. Those in Germany who do not possess their properties are significantly poorer than owners of real estate.
To defend the German welfare a bit, questions must be posed at the methodology of the research. First of all, the system of property rentals in Germany is well developed so many people simply decide to rent rather than to buy. Secondly, the social network is strong as well – the urge to save for retirement, study or unemployment is very limited.
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