Europe's news in English

COPY LINK

WEALTH

Swedish household wealth rebounds: study

Swedish household wealth has rebounded strongly in 2009 and has now clawed back half of the 976 billion kronor ($143 billion) fall in the wake of the stock market crash.

Published: 24 September 2009 15:42 CEST

Swedish household wealth rebounds: study

During the first half of 2009 Swedish household wealth has increased by a net 472 billion kronor, according to Swedish bank SEB’s new saving barometer.

“The strong stock market gains, rising house prices and a high level of savings are the reasons behind the recovery in household wealth. But there is still some way to go before household balance sheets are back at the peak of the summer of 2007,” SEB economist Gunilla Nyström said in a statement.

Swedish household net wealth peaked at 6,903 billion kronor in the second quarter 2007 and bottomed out at 5,604 billion kronor in the fourth quarter of 2008.

Savings increased by 57 billion in the second quarter with 15 billion placed in investment funds.

Swedish household debt in relation to assets declined over the period as a result of the gains and is now 28.4 percent after having been as high as 30 percent.

Member comments

Log in here to leave a comment.

Become a Member to leave a comment.

Court turns down AfD-led challenge to Germany's spending in pandemic

Germany last year ratified the €750-billion ($790-billion) fund, which offers loans and grants to EU countries hit hardest by the pandemic.

The court in Karlsruhe ruled on two challenges, one submitted by a former founder of the far-right AfD party, and the other by a businessman.

They argued the fund could ultimately lead to Germany, Europe’s biggest economy, having to take on the debts of other EU member states on a permanent basis.

But the Constitutional Court judges ruled the EU measure does not violate Germany’s Basic Law, which forbids the government from sharing other countries’ debts.

READ ALSO: Germany plans return to debt-limit rules in 2023

The judgement noted the government had stressed that the plan was “intended to be a one-time instrument in reaction to an unprecedented crisis”.

It also noted that the German parliament retains “sufficient influence in the decision-making process as to how the funds provided will be used”.

The judges, who ruled six to one against the challenges, did however express some reservations.

They questioned whether paying out such a large amount over the planned period – until 2026 – could really be considered “an exceptional measure” to fight the pandemic.

At least 37 percent of the funds are aimed at achieving climate targets, the judges said, noting it was hard to see a link between combating global warming and the pandemic.

READ ALSO: Germany to fast-track disputed €200 billion energy fund

They also warned against any permanent mechanism that could lead to EU members taking on joint liability over the long term.

Berenberg Bank economist Holger Schmieding said the ruling had “raised serious doubts whether the joint issuance to finance the fund is in line with” EU treaties.

“The German court — once again — emphasised German limits for EU fiscal integration,” he said.

The court had already thrown out a legal challenge, in April 2021, that had initially stopped Berlin from ratifying the financial package.

Along with French President Emmanuel Macron, then chancellor Angela Merkel sketched out the fund in 2020, which eventually was agreed by the EU’s 27 members in December.

The first funds were disbursed in summer 2021, with the most given to Italy and Spain, both hit hard by the pandemic.

Url copied to clipboard!