Saving Trends in the Eurozone: Market Assessment 2002

Among the six Euroland countries under review — Belgium, France, Germany, Italy, The Netherlands and Spain — ownership of notes and coins, as a percentage of all financial assets, is highest in Spain and lowest in The Netherlands and Belgium. In France, Italy, Spain and Belgium, over 40% of households' financial assets are in shares and other equities. Transferable deposits, such as cheque accounts and no-notice deposit accounts, are proportionately highest in Italy. The Belgians and Dutch, who are substantial investors in life assurance and equities respectively, hold very few transferable deposits. This market assessment covers the topic.

• UK Lead In Financial Assets
  
• Belgians Go For Equities
  
• French Demand For Low-Risk Investments
  
• New German Pensions Market
  
• Italians Press To Keep Generous Welfare
  
• Limited Prospects In Mature Dutch Market
  
• Direct Sellers Advance In Spain
  
• Age Is The Big Issue
  
• Risk-Averse Savers

1. Introduction

• The Topic
  
• Methodology And Research
  
• Problems In The Research Process

2. Strategic Overview

• Northern Sceptics
  
• Table 1: The EU Population By Country (Million And %), 1996 And 2002
  
• International Monetary Fund Forecasts
  
• Table 2: Real GDP, Unemployment And Consumer Prices In The EU (%), 1999-2002
  
• Table 3: Net Debt Levels In Major Economies (% Of GDP), 1998-2006
  
• Small Nations Are Most Productive
  
• Table 4: GDP Per Capita In PPu (100=Average), 1998-2002
  
• Figure 1: GDP Per Capita In PPS (100=Average), 1998-2002
  
• Incomes More Equal In The North Than The South
  
• Table 5: Income Ratio Between Quintile With Highest Incomes And Quintile With Lowest Incomes, 1995 And 1998
  
• UK Households Have The Greatest Assets
  
• Table 6: EU Net National Saving At Current Prices By Country (% Of GDP), 1999
  
• Table 7: EU Households' Financial Assets By Country (NBN And % Of GDP), 2000
  
• Figure 2: EU Households' Financial Assets By Country (NBN And % Of GDP), 2000
  
• Notes And Coins Insignificant
  
• Shares And Other Equity Predominate In Euroland
  
• Table 8: EU Households' Financial Assets By Type By Country (% Of Total), 2000
  
• Table 9: EU Households' Financial Assets By Value By Type By Country (EBN), 2000
  
• Figure 3: EU Households' Financial Assets By Value By Type By Country (EBN), 2000
  
• Belgium And The Netherlands Top Euroland In Per Capita Financial Assets
  
• Table 10: EU Households' Financial Assets Per Head Of Population By Country (E), 2000
  
• Figure 4: EU Households' Financial Assets Per Head Of Population By Country (E), 2000
  
• Underdeveloped Life And Pensions Markets
  
• Table 11: EU Households' Financial Assets Per Head Of Population By Value By Type By Country (E), 2000
  
• Figure 5: EU Households' Financial Assets Per Head Of Population By Value By Type By Country (E), 2000

3. Belgium

• Slowing Down
  
• Table 12: Demography, National Accounts And Employment And Incomes Of Belgium And UK (Million, %, $Bn, $ And R), 1997 And Latest Available Years
  
• Lots Of Shares And Not Much Cash
  
• Shareholders With International Perspective
  
• Banking Consolidation
  
• KBC Looks Eastwards
  
• Global ING
  
• AXA And DEXIA
  
• Pensions Liabilities Moderate
  
• Savings Trends

4. France

• Strong Public Sector Aids Economic Stability
  
• Public Sector Real Wages Still Rising
  
• Investment In Shares And Property
  
• Taxes Limit Wealth Accumulation
  
• Table 13: Demography, National Accounts And Employment And Incomes Of France And The UK (Million, %, $Bn, $ And R), 1997 And Latest Available Years
  
• State Debt Still Under Control
  
• Tax-Shelter Products Find Favour
  
• Scope To Expand Financial Services For Manual And Office Workers
  
• Table 14a: Household Wealth In France By Occupational Group By Type Of Holding (% Holding Selected Assets), 2000
  
• Table 14b: Household Wealth In France By Occupational Group By Type Of Holding (% Holding Selected Assets), 2000
  
• Table 15: Household Wealth In France By Type Of Holding (% Holding Selected Assets), 1996-2000
  
• Figure 6: Household Wealth In France By Type Of Holding (% Holding Selected Assets), 1996-2000
  
• Households' Assets Worth Nearly E5,600bn
  
• Banks Seek European Scale
  
• Profitable But Is There Enough Provision For Risks?
  
• Savings Banks Have Social Functions
  
• Government Tries To Favour French Companies
  
• French Giant AXA Suffers In 2001
  
• Setback For Life Insurance
  
• Conservative Distribution
  
• Summary

5. Germany

• Steps To Prevent Pensions Crisis
  
• A Little Older, A Little Poorer But Still In Control
  
• Table 16: Demography, National Accounts And Employment And Incomes Of Germany And The UK (Million, %, $Bn, $ And R), 1997 And Latest Available Years
  
• Falling Real Wages
  
• Table 17: Contributions To Gross Wages And Salaries At Current Prices In Germany By Sector (%), 1999-2001
  
• Savings Rate Rises Again
  
• Table 18: Households' Saving Rate In Germany At Current Prices (% Of Disposable Income), 1993-2001
  
• Table 19: Savings Deposits In Germany By Value By Institution (TBN), 1995-2000
  
• Figure 7: Savings Deposits In Germany By Value By Institution (TBN), 1995-2000
  
• Germans Lag In Insurance Funds
  
• Savings Banks Have Half Of Deposits
  
• Table 20: Savings Deposits In Germany By Value By Share By Institution (%), 1995-2000
  
• Figure 8: Savings Deposits In Germany By Value By Share By Institution (%), 1995-2000
  
• Table 21: Deposits, Loans And Savings Agreements In Germany (EBN), 1995-2000
  
• Chasing Best Rates
  
• Table 22: Volumes Of Savings Business† By Notice Period And Type Of Account (%), 1993 And 2000
  
• Rapid Growth In All Forms Of Insurance
  
• Table 23: Gross Premiums And Capital Investments In Germany By Type (EBN), 1995-2000
  
• Private Pension Funds From 2002
  
• Fixed Interest Securities More Popular Than Shares
  
• Banks Need Their Strength Now
  
• EUropean Ambitions
  
• Caution For Deutsche Bank
  
• Commerzbank's Italian Tie
  
• Munich Re And Allianz: Building Bancassurance
  
• Openness More Apparent Than Real
  
• Consumer Protection Strengthened
  
• Savings Banks Strong
  
• Credit Co-Operatives Retail Wide Appeal
  
• Summary

6. Italy

• Financial Problems Of Ageing
  
• Table 24: Demography, National Accounts And Employment And Incomes Of Italy And UK (Million, %, $Bn, $ And R), 1997 And Latest Available Years
  
• Financial Wealth `Average' For EU
  
• Opposition To Foreign Ownership
  
• Disastrous Year For Intesabci
  
• EUropean Role For Mediobanca
  
• Mass Market In Municipal Bonds
  
• Pensions Precipice Awaits
  
• Savings Trends

7. The Netherlands

• Champion Savers
  
• Economy Slows Down
  
• Table 25: Demography, National Accounts And Employment And Incomes Of The Netherlands And The UK (Million, %, $Bn, $ And R), 1997 And Latest Available Years
  
• Not So Equal
  
• Huge Role For Life And Pensions
  
• Insurance Dominance Unusual
  
• Lower-Income Groups Favour Postbank
  
• A Dutch Giant Growing
  
• ING Brand Goes International
  
• Savings Trends

8. Spain

• Relatively Strong GDP Growth
  
• Table 26: Demography, National Accounts And Employment And Incomes Of Spain And The UK (Million, %, $Bn, $ And R), 1997 And Latest Available Years
  
• Investment Growth From Late 1990s
  
• Rapid Expansion In Online Savings
  
• Savings Banks Have Social Role
  
• Commercial Banks Look To Italy
  
• Another Ageing Population
  
• Moderate Future Pensions Outflows
  
• Private Pensions Disadvantaged By Generous State Schemes
  
• Households Go For Shares
  
• Growing Role For Insurance Companies
  
• Savings Trends

9. Strategic Assessment

• Threats From Age And Eastern Europe
  
• Taxing Savings
  
• Elections For France, Germany And The Netherlands
  
• The Euro And Euronext
  
• Move To Funded Pensions But Can Companies Deliver?
  
• Avoiding The Debt Option?
  
• Opportunities But Not On A Plate

10. The Future

• Taxation Take
  
• Table 27: EU General Government Current Tax And Non-Tax Receipts By Country (% Of GDP), 1990-2003
  
• Huge Pensions Liabilities
  
• Economies Into Reverse
  
• Security Or Stagnation: The Finely Poised Savings Balance
  
• Impact Of Low Or Zero Population Growth
  
• Table 28: The Forecast EU Population From Different Sources By Country (Million), 2002 And 2010
  
• Either Democracy Or Stability?
  
• Where Savers' Cash Should Go

11. Glossary

13. Electronic Sources

• Belgium
  
• Europe
  
• France
  
• Germany
  
• International
  
• Italy
  
• The Netherlands
  
• Spain

12. Further Sources

• General Sources
  
• Bonnier Information Sources
  
• Government Publications
  
• Other Sources