According to the German research Institute of ‘Flossback von Storch’, the economic gap between northern and southern European countries is widening. The findings of the institute reveal that Germans are benefiting from the rising prices in property values.

Factoring in a series of goods and services like property, expensive wine, stock shares and art, the study indicated that Austrians and Germans are 7% wealthier on average compared to last year. In comparison, countries in the south like Greece, Italy and Spain saw their property values decline by more than 4%. This disparity leads to increased political tensions among Eurozone member-states, while citizens in the periphery of Europe are finding it increasingly difficult to use their properties as collateral with banks for loans.

The findings of the institute reveal that the southern countries were booming until 2006 when the economic crisis hit. The European Central bank (ECB) has recognised the general trend, pointing out that the gap between weaker and stronger economies within the Eurozone is increasing instead of shrinking, adding that this outcome had alreday been forecast when setting up the Eurozone.