Wealth Inequality Remains Elevated in Greece After Debt Crisis
(MENAFN) Wealth disparities in Greece and several other eurozone countries that received international financial assistance continue to exceed pre-crisis levels, according to an analysis by the European Central Bank (ECB).
The assessment found that successive economic disruptions, including the sovereign debt crisis, the COVID-19 pandemic and the sharp rise in inflation, had affected the distribution of wealth differently across households and countries.
Across the eurozone, wealth inequality increased between 2010 and 2014 before gradually falling to levels close to those recorded before the financial crisis. However, Greece, Spain, Italy, Portugal, the Greek Cypriot Administration and Ireland followed a different pattern, with inequality remaining considerably higher.
In Greece, fears over the country's ability to manage its public debt in early 2010 led to a severe economic downturn. Falling property prices played a significant role in widening the wealth gap.
Homeowners with mortgages experienced declines in property values while their outstanding loan balances remained unchanged, the analysis noted.
At the same time, households with lower incomes were forced to use their savings to cover essential expenses, whereas wealthier families benefited from the relatively faster recovery in financial markets.
The ECB analysis showed that wealth inequality in countries severely affected by the crisis continued increasing until 2021. By 2023, the measure remained above its 2010 and 2014 levels, while the rest of the eurozone had recorded a decline below pre-crisis figures.
The continued disparities were partly linked to financially vulnerable households struggling to rebuild their savings, alongside declining homeownership rates, particularly among younger people.
The gap also persisted through the coronavirus pandemic and the inflation surge between 2021 and 2023. This occurred despite government assistance programs and the reduction in the real value of debt helping to ease inequality across the wider eurozone.
Separately, Eurostat figures indicated that 50.5% of Greece’s population could not afford an unexpected expense in 2025, the highest proportion among EU member states. The bloc-wide average stood at 29.2%.
Greece’s figure was also higher than those recorded in Latvia at 43.7%, Bulgaria at 42.4% and the Netherlands at 15.3%.
The assessment found that successive economic disruptions, including the sovereign debt crisis, the COVID-19 pandemic and the sharp rise in inflation, had affected the distribution of wealth differently across households and countries.
Across the eurozone, wealth inequality increased between 2010 and 2014 before gradually falling to levels close to those recorded before the financial crisis. However, Greece, Spain, Italy, Portugal, the Greek Cypriot Administration and Ireland followed a different pattern, with inequality remaining considerably higher.
In Greece, fears over the country's ability to manage its public debt in early 2010 led to a severe economic downturn. Falling property prices played a significant role in widening the wealth gap.
Homeowners with mortgages experienced declines in property values while their outstanding loan balances remained unchanged, the analysis noted.
At the same time, households with lower incomes were forced to use their savings to cover essential expenses, whereas wealthier families benefited from the relatively faster recovery in financial markets.
The ECB analysis showed that wealth inequality in countries severely affected by the crisis continued increasing until 2021. By 2023, the measure remained above its 2010 and 2014 levels, while the rest of the eurozone had recorded a decline below pre-crisis figures.
The continued disparities were partly linked to financially vulnerable households struggling to rebuild their savings, alongside declining homeownership rates, particularly among younger people.
The gap also persisted through the coronavirus pandemic and the inflation surge between 2021 and 2023. This occurred despite government assistance programs and the reduction in the real value of debt helping to ease inequality across the wider eurozone.
Separately, Eurostat figures indicated that 50.5% of Greece’s population could not afford an unexpected expense in 2025, the highest proportion among EU member states. The bloc-wide average stood at 29.2%.
Greece’s figure was also higher than those recorded in Latvia at 43.7%, Bulgaria at 42.4% and the Netherlands at 15.3%.
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