The dynamics of wealth inequality in Europe

This study examines wealth inequality trends across European Union countries, utilising data from the European Central Bank’s Household Finance and Consumption Survey (HFCS) and covering the period 2010 to 2021. It explores key drivers of wealth distribution, including housing wealth, savings behaviours and intergenerational wealth transfers, while analysing the economic position of the middle class and the impacts of the COVID-19 pandemic. The study highlights significant disparities in wealth concentration, with the top deciles owning a disproportionate share of total wealth. Housing emerges as a critical yet unequal determinant of wealth, exacerbating disparities, especially among younger people and lower-income groups. The research also emphasises the declining wealth share of the middle class and limited social mobility, alongside policy responses that mitigated income inequality but failed to address wealth disparities during the pandemic. The study concludes with policy recommendations to introduce wealth declarations, promote financial inclusion, support the middle class and address housing affordability.