European Central Bank News

ECB shows Irish and Spaniards got poorer as Germans, Dutch prospered

A trader looks at computer screens as another one talks on his mobile phone at the Madrid stock exchange September 11, 2014.

Ireland's citizens lost more of their personal wealth than any other euro zone country in the aftermath of the financial crash while Germany and the Netherlands gained the most, fresh data from the European Central Bank shows.

In an analysis of the years between 2009 and 2013, ECB experts discovered that Ireland lost more than 18,000 euros ($20,500) per person, while Spaniards saw wealth dwindle by almost 13,000 euros as property in both nations plummeted.

Greeks saw their notional wealth decline by almost 17,000 euros for the same reason.

In the Netherlands and Germany, by contrast, the wealth per capita grew by roughly 33,000 and 19,000 respectively, due in part to a boost to financial investments over that time.

By presenting the data in this manner, the ECB acknowledges the divergence, although there is little the central bank can do to remedy it.

Its money-printing scheme known as quantitative easing is spread out according to euro zone member countries' relative size and not determined by their economic needs.

To fix imbalances between strong industrial nations such as Germany and countries such as Spain, experts have long pushed for a system of financial transfers or payments from rich to poor states.

Germany, which fears that this would lumber it with unmanageable costs and believes that handouts would discourage spendthrift countries from reforming, has flatly rejected the suggestion.