ECB indicates south Europeans can endure more austerity – The European Sting | Les #faisans!
According to a European Central Bank report which was published yesterday, the average household in south European countries like Cyprus, Greece, Spain and Italy possess more net wealth than their peers in the north (net wealth is defined as the difference between total assets and total liabilities). The obvious conclusion is that they can endure more austerity and shock therapy measures. For example the study finds that the mean net wealth of a Cypriot household is €670,900, of a Spanish one €291,400, of an Italian € 275,200, in comparison to only €195,200 in Germany, in the Netherlands € 170,200 and in Finland just €161,500. The authors of the report note that, “The data for Cyprus appear not to be comparable with those for other euro area countries in a number of dimensions and should therefore be interpreted with caution. However, once the above mentioned factors are accounted for, the net wealth figures for Cyprus appear less of an outlier”.