Home European Union Is Germany Becoming Europe’s Most Unequal Major Economy?

Is Germany Becoming Europe’s Most Unequal Major Economy?

German Diplomacy: Will Deportations to Afghanistan Redefine EU Norms? Photo Michael Matthey-dpa
German Diplomacy: Will Deportations to Afghanistan Redefine EU Norms? Photo Michael Matthey-dpa

Germany’s rising public concern about social inequality is not happening in a vacuum; it reflects broader patterns and divergences across the European Union. When comparative data is brought into the picture, Germany’s challenges appear both unique and characteristic of larger European socioeconomic dynamics.

Wealth Inequality: Germany Among the Most Unequal Major EU Economies

Wealth — the total value of assets held by households — is a particularly telling measure of inequality because it amplifies differences in financial security, intergenerational mobility, and access to opportunity.

According to the Gini coefficient of wealth distribution (where a higher score means greater inequality), Germany stands out among the EU’s largest economies:

  • Germany has one of the highest levels of wealth inequality among the EU’s big economies.

  • Countries such as Spain, Italy, France and the UK show moderate levels of inequality, with Spain and Italy having slightly lower Gini scores than Germany.

  • Sweden, though often perceived as egalitarian, ranks even higher in wealth inequality, due largely to fiscal policy choices and tax structures.

  • By contrast, Belgium, Malta, and Slovenia display relatively lower levels of wealth inequality.

In numerical terms, within Europe’s major economies the wealthiest 10 % in Germany control over 60 % of total wealth, a proportion higher than in Spain or France, where the top decile holds just over half of total wealth.

This concentration of wealth helps explain why many Germans feel that inequality has grown — even if income inequality indicators alone may appear more stable — because wealth disparities concentrate economic power at the top more intensely in Germany.

Income vs Wealth: Interpreting Different Facets of Inequality

It’s important to distinguish between income inequality (differences in earnings, wages, and disposable income) and wealth inequality (cumulative assets and net worth).

Across the EU:

  • Income inequality measures (such as the EU’s S80/S20 ratios) show a general pattern where some member states — including Italy, Latvia, Lithuania, and Romania — have higher income disparities.

  • Median disposable income differences show that Western and Nordic countries generally enjoy higher living standards, with Luxembourg and the Netherlands ahead, whereas Eastern and Southern states like Bulgaria and Greece lag behind.

Germany, in income terms, remains comparatively well-off — median disposable income levels are among the top in the Union — yet German citizens report strong perceptions of worsening inequality, illustrating the gap between lived experience and broad macroeconomic figures.

Public Perception Across the EU: Shared Worries, Different Intensities

Public opinion surveys across the EU show that concern about inequality is widespread, but its intensity varies by country. For example:

  • Germany reports a high percentage of people who feel inequality is increasing, comparable to sentiment seen in Portugal, Bulgaria, and Hungary.

  • Historically, pan-EU polls revealed that over 90 % of Germans feel income differences are too great — one of the highest proportions in the bloc.

  • By contrast, countries like Denmark and the Netherlands — despite facing their own inequality issues — report lower agreement that income gaps are “too great,” reflecting different expectations about social fairness and economic mobility.

These differences underscore how perceptions are shaped by local contexts, social safety nets, and cultural expectations; even if inequality levels are similar, societies respond differently based on history and public discourse.

Eastern vs Western Europe: Inequality Patterns Diverge

Within the EU, a clear geographic pattern emerges in inequality metrics:

  • Eastern European countries such as Slovakia, Poland, and Czechia tend to have lower wealth inequality, reflecting a combination of high home-ownership, different asset structures, and distinct post-communist economic transformations.

  • Western and Nordic members, including Germany, Spain, France, and the Netherlands, generally show higher wealth inequality amid more diversified financial asset holdings and capital market engagement.

This pattern suggests that economic structures and historical development shape inequality outcomes differently across regions — and that no single model best fits all EU members.

Poverty and Social Exclusion: A Broader EU Issue

Another lens on inequality is the risk of poverty or social exclusion, defined by the European Union as living with low income, material deprivation, or low work intensity.

Eurostat data indicate that roughly 22 % of the EU population faced such risks, with significant variation across member states:

  • Countries like Romania, Bulgaria, and Greece recorded the highest shares.

  • Central European states such as the Czech Republic and Slovenia had the lowest proportions.

This suggests that structural deprivation remains more acute in parts of Southern and Eastern Europe, while in wealthier regions, inequality may manifest more in relative wealth concentration rather than absolute poverty.

Why These Comparisons Matter for Policy

Understanding how Germany compares to other EU countries on inequality highlights several policy implications:

  • Germany’s high wealth inequality relative to other large economies underscores that having a well-developed welfare state and robust median incomes does not automatically translate into perceived equity.

  • Policy measures that only target income may be insufficient if wealth concentration continues to grow.

  • Comparative EU data also underline the importance of tailored solutions, as inequality drivers differ — from housing and financial markets in Nordic countries to labor market structures in Southern and Eastern European states.

Germany in the EU Inequality Landscape

Germany’s growing public concern about social inequality is part of a broader European conversation about fairness, opportunity, and economic structure. While Germany ranks among the most wealth-unequal of the continent’s major economies, it is not alone — and each member state displays unique inequality patterns shaped by historical legacies, policy choices, and economic models.

Such comparative perspectives encourage policymakers to look beyond simple income statistics and adopt multidimensional approaches to inequality — factoring in wealth distribution, public perceptions, welfare structures, and risks of social exclusion across the EU.

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