European Commission study highlights rising wealth inequality in Cyprus and EU member states

A recent European Commission study titled 'Wealth Taxation, Including Net Wealth, Capital and Exit Taxes' reports a significant increase in wealth concentration across several EU member states. In Cyprus, the richest 10% of households held 67% of total national wealth in 2023, marking a 13-percentage-point increase since 2007. Greece also saw a rise, with the top 10% holding 61% of wealth, an increase of 11 percentage points from 2007. Other countries cited with rising wealth concentration include Slovenia, Malta, Portugal, Spain, and Italy. While central and eastern EU states largely saw increases, some northern and western European nations experienced declines or stability, with Sweden noted as an exception due to a 7.2 percentage point rise. The report evaluates the current fiscal architecture as insufficient to address these trends. Additionally, the study discusses potential revenues from a coordinated European wealth tax based on a model by economist Gabriel Zucman, which includes a proposed 2% annual tax on net wealth.