Have to pay bigger assets: Why are we still going for Italy and Spain

Around 35.310 Euro had the average German in the past year, 91.889 Euro the average Italian and the average Spaniard even 95.360 Euro. 51.4 percent of Germans l

Have to pay bigger assets: Why are we still going for Italy and Spain

Around 35.310 Euro had the average German in the past year, 91.889 Euro the average Italian and the average Spaniard even 95.360 Euro. 51.4 percent of Germans live in their own house, 72.4 per cent of Italians and even 77.1 percent of Spaniards. Nevertheless, mainly the German taxpayer, which is now the Corona-aid package from the EU should be asked to in favor of the Italians and Spaniards are there. Superficially, the question has become: Can help the two countries?

taken Together, the Italians have, for example, a net wealth estimated at 10 billion Euro. The state debt of the country are just 2.5 trillion euros. There is enough money so as to operate all of the debt, through higher taxes. But: it's The same for us, Germany's debt is expected to be around 2.3 trillion Euro, the SPD and the Left does not enforce private assets with 15 trillion euros, but even higher than in Italy – and still can be with us for years, with higher taxes for the Rich.

Why the assets in Italy and Spain is higher

so This is it utopian to expect this from Italy. Nevertheless, the objection remains that the average Italian is wealthier than the average German, and it would therefore be unfair if the latter, the former would have to Finance.

But Italians have the higher net assets for the fun of it. It arises, firstly, from the higher level of real estate owned. And is, in turn, with the higher Rent. The EU statistical office Eurostat reports that 42 percent of Spaniards, who live for rent, you need to spend more than 40 percent of their income. In Italy it is 28, in Germany only 20 per cent.

With such high Rent so it is only understandable that the Italians spend their money rather for your own home. Because something like social housing, there are in the two countries. While 19.3 percent of Germans live in apartments at discounted Rent in Spain (13.1 per cent) and Italy (10.7%) is significantly less.

Secondly, the Italians and the Spaniards back over the generations of money, because the state would assume responsibility in an emergency is hardly. Even when including the higher pension levels in both countries compared to Germany, we in this country better. Per capita and year, the German state is 10.792 Euro in social assistance, for example unemployment benefit, while in Italy, 7857 name metal Euro, and in Spain, 6125 Euro. The difference must compensate citizens in both countries, so with their own assets.

the aid package: Why both countries to cope with higher taxes,

So it looks funny, when German Economists such as Daniel Stelter demand that Italy should remove each and every one of its citizens, 20 percent of its assets to the repayment of debt. The Italians were still rich enough, he argues. Even the suggestion of such a measure is likely to lead to a flight of capital from both countries. House owners would like to sell in a panic, your real estate, the market to collapse. Who is not fast enough, would rapidly lose a large part of his fortune.

the same is true for the Rest of the economy: The Corona-crisis is primarily a consumption crisis. Businesses suffer because they can no longer sell their Goods and services. That's why all the countries around the world, economic stimulus programs, with which it pumps money into the market – and not by higher taxes, which take out. Because that would lower the consumption even more, and the problems of the economy strengthen.

at All such a proposal is subject to the erroneous assumption that Italians and Spaniards would pay low taxes. The tax burden on Italian labour income is 48 percent, only slightly below the German (49.4%). In Spain, 39.5 per cent, lower, but still significantly above the OECD average of 36 percent.

There is another way to look at the different assets in the two countries: The average German household each year 53.100 Euro. In Spain, there are 34,500 euros, in Italy 33.800 Euro. With other words: The German taxpayers ' payments in both countries, aid can be much better to cope with than Vice versa. And this is one of the main reasons why we have to pay for the aid package within the EU.

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follow the author on Twitter As ZDF-man makes him after ten minutes, still same question, it is sufficient Söder FOCUS Online/Wochit As the ZDF-man to him after ten minutes, still same issue, it is sufficient Söder

As commented on the FOCUS Online readers of this post:

"You can ask the Italians and Spaniards, not higher taxes, because you are paying no tax at all. In the case of the Germans, this is easy, we already have the highest taxes in Europe, and if the retirees work longer, is also not needed so much money for the pension. Let's see, a move to Poland or Hungary would not be bad."

"The most important point is not that Germany has the money, which is distributed Merkel here and there and everywhere, and never had. Germany is a lame duck in terms of investment. The German infrastructure is crumbling. It's just that many EU member States have a much marodere infrastructure, allows us to in comparison to look good. The Euro has deprived many countries of the needs for Reform, but the reform is necessary, now even greater, because the debts are much higher. Germany, plagued by a rising old-age poverty, Investment backlog, and a climate of hysteria weakened economy, can't raise the money at all. Since only pressure hot pressing, and the Inflation will be. And love none of them has the German anyway." Temperatures soar to the top: the Azores brings up the long-awaited summer PCP temperatures soar to the top: the Azores brings up the long-awaited summer, As ZDF-man makes him after ten minutes, still same question, it is sufficient Söder FOCUS Online/Wochit As the ZDF-man to him after ten minutes, still same issue, it is sufficient Söder

Updated Date: 21 July 2020, 11:26

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