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Austrian Real Income Fell Dramatically

Published: August 20, 2012; 17:51 · (Vindobona)

Economists often say that Austria has benefitted from the euro. According to a study of UBS, Austria has lost a substantial degree of prosperity, however.

Austrian Real Income Fell Dramatically / Picture: © Vindobona.org

Since 2000, the Austrian real income fell by up to 35%. UBS only analyzed the date from 2000 to 2010. The Swiss bank UBS analyzed the inflation-adjusted income of eleven European countries. According to UBS, the introduction of the euro was no benefit at for Austria. But also for German and Irish income recipients, the real income fell significantly. In Italy and France, the majority of the income recipients lost prosperity too. By contrast, the winners were Greece, Spain and Portugal.

Since 2000, the Austrian real income fell in all income groups. The highest decrease was observed for the poorest income group, for which the real income was down by 35%. The analyst Paul Donovan comments that Austria´s data are “alarmingly weak”. “The picture shows relatively low growth rates of the nominal income in combination with inflation.” On average, the Austrian real income was down by 25% to 30%. For the richest income group, net income fell only by 10%.

“For the most Eurozone members, it was the wrong decision to participate in the monetary union. The fact that the life standard was down in some economies will cause resentments against those economies, which registered a growing life standard.” Donovan says.

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