Even with the East Germany playing the West down. It's still a bit far fetched. I have a really difficult time believing that Germans are poorer than Italians, let alone Spaniards, in per capita real terms.
Here is a map:
http://en.wikipedia.org/wiki/List_of_countries_in_Europe_by_monthly_average_wage
Well, northern Italy has been usually extremely wealthy, that's not so surprising. I'm certain that they are wealthier than Germans. But south Italy is the poor's house with half the income of the north. The difference is much bigger than between east and west Germany. So it is not clear to me how Italy as a whole compares really to Germany.
There is also another thing: The Hartz IV reform implemented a programmed statistical wealth drain, which was not present before in Germany. In case of unemployment more than one year, it forces the unemployed to spend almost all of his savings until he gets financial help. It means after working and saving 30 years it can happen that 7 years of unemployment eradicate the savings of 30 years. The help then is unrelated to the wages from before, as if he never worked.
I don't know whether other countries have similar rules (they are based on Friedman and Thatcher), probably they do. But for Germany this was a new thing which I believe is a major explanation for the results of the study. Hartz IV imposed the risks of the labour market upon everyones savings. In stock markets, risks equal prices, for good reason.
But I agree, the results still seem somewhat far-fetched. Especially the spanish house prices where ridiculously high in 2008. There are additional flaws:
3. The data are based on voluntary phone questionaries. Maybe many people refused to talk because they actually had good savings which they wanted not to reveal. On the other hand, property owners might tend to overestimate their house value.
4. Governmental pension entitlements are higher in Germany than in other countries and not included in the savings consideration. On the other hand, the risk to not become old enough (67) to enjoy it is a big minus for this type of wealth.
Still despite the obvious flaws, the study bears interesting grains of truth.
German inequality is a bit higher than Scandinavia, but on the other hand, less of it is consumed in taxes.
However I wouldn't doubt that the actual Germany's socio reality is more unfair than it was ten years ago.
The developments in years was very clear:
1) The German ruling class impoverished the German people to increase "competitiveness" in relation to China (it also had the side effect of making rich people even richer), the number of billionaires has increased in Germany.
2) Now Germany wants to "universalize", the Agenda 2010 reforms ("one euro jobs," Hartz IV, etc) did indeed help cause the euro crisis as well. Germany unilaterally restrained its labor costs while most other euro nations followed the normal development. This led to huge imbalances. (I'm not saying that the Southern Europeans are not at all to blame, some had excessive deficits and some were irresponsible in their labor costs, but the German policy also strongly contributed to the crisis.)
Yes, exactly! And I would add that within a one-currency-zone, one region can never defeat the other without subsequent need of bailout of the defeated. Otherwise the zone must break-up. But there is a saying: if two blame each-other, then thirds might have the best laugh.