Inequality in Southern Europe remains high

Inequality increased in Southern European countries during the sovereign debt crisis from 2010 to 2013, primarily due to falling property prices. Economists from the ECB found that inequality remains high, particularly in the most affected nations, despite a return to pre-crisis levels in the eurozone overall. The decline in property values significantly impacted indebted families, while wealthier households saw stock prices recover quickly. Although property prices gradually increased post-crisis, lower homeownership rates meant fewer families benefited from this recovery, leading to persistent inequality. The COVID-19 pandemic stabilized inequality due to government support, but rising inflation from 2021 to 2023 has strained lower-income families, diminishing their purchasing power.