In a new blog post, the European Central Bank assesses euro area net wealth inequality, finding that it had returned close to 2010 levels by 2023 but remained elevated in the countries most affected by the sovereign debt crisis. Drawing on the Eurosystem Household Finance and Consumption Survey, the analysis shows that the euro area Gini coefficient rose from 68.2 in 2010 to 69.7 in 2014 before declining to 68.5 in 2023.
The aggregate decline masked uneven changes across the wealth distribution. The poorer half of households held 6.2% of total net wealth in 2023, up from 6.0% in 2010, while the wealthiest 10% retained 51.8%, compared with 50.8% in 2010. Inequality remained broadly stable during the COVID pandemic, partly because of government support for vulnerable households. During the 2021-2023 inflation surge, reductions in the real value of assets and debt, alongside targeted fiscal measures, outweighed the unequal effects of higher living costs and somewhat reduced inequality. Households with higher debt relative to their assets generally experienced smaller wealth losses or marginal gains.
The sovereign debt crisis left more persistent effects in the countries it hit hardest. Falling house prices were the main driver of the initial increase in inequality, reducing homeowners’ asset values without lowering their outstanding debt. In the most affected countries, poorer households struggled to rebuild savings, while declining homeownership, particularly among younger households, meant fewer people benefited from the subsequent recovery in house prices. Their Gini coefficient continued rising until 2021 and remained above both its 2010 and 2014 levels in 2023.