Private Wealth and European Solidarity
Many in the eurozone are asking why creditor-country taxpayers should finance debtor countries that often have higher private-wealth/GDP ratios than their more solvent counterparts. By calling on citizens to fund their countries’ debts, governments can fix their own economies – and strengthen European solidarity.
https://prosyn.org/ZG8RDQ7
COLOGNE – A little-discussed but crucial factor in the debate over wealth transfers from Europe’s more economically sound north to its troubled south is the relationship between public debt, GDP, and private wealth (households’ financial and non-financial assets, minus their financial liabilities) – in particular, the ratio of private wealth to GDP in the eurozone countries.