ECB Data: Cypriots On Average Three-Times Richer Than Germans
Baku, April 10 (AZERTAC). Cypriot citizens were on average more than three times wealthier than their German counterparts before the crisis, according to a European Central Bank study on household finance and consumption released Tuesday.
The data may help to explain the Eurozone`s reluctance to offer more generous aid to Cyprus and political obstacles any further bailout loans may face in the parliaments of northern Europe.
The study showed that citizens in AAA-rated countries that bear the largest share of the Eurozone`s bailout burdens enjoy significantly less wealth than those in the periphery. One exception is Luxembourg.
The median net wealth of citizens in the Eurozone`s tax havens of Luxembourg (E397,800), Cyprus (E266,900) and Malta (E215,900) significantly exceeded those of citizens elsewhere in the region, data from 2008-2010 show.
The average wealth, which is likely to be distorted by the super-rich, stood at E710,100 in Luxembourg, E670,900 in Cyprus and E366,000 in Malta.
Private wealth in the Eurozone`s perceived rich countries looks meagre by comparison. In Germany, median net wealth stood at E51,000 (E195,200 average), in the Netherlands the median was E103,600 (E170,200) and in Finland E85,800 (E161,500 average).
Only citizens in the two bailout countries of Greece and Portugal, as well as those in Slovenia and Slovakia, had lower average wealth than those in triple-A countries.
In Slovakia the median net wealth was E61,200 (average E79,700) in Slovenia E100,700 (average E148,700), in Portugal E75,200 (average E152,900) and in Greece E101,900 (average E147,800)
Citizens in Spain, which has already received a bailout, and Italy, which is seen as a potential candidate for support measures, are notably wealthier. In Spain the median wealth was E182,700 (average E291,400) and in Italy E173,500 (average E275,200).
Data for Estonia and Ireland were not available. While the ECB study said that data from Cyprus may not be comparable in some areas of the study, it said that figures on net wealth should be.
The study noted that the "substantial variation across the euro area members" can in large part be ascribed to housing ownership and valuation of housing. Importantly, the data were collected when housing bubbles in some countries such as Spain had driven prices to a peak.
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