This seminal study from economists Maria Demertzis, Marta Domínguez-Jiménez and Annamaria Lusardi assesses the financial condition of households in the European Union. Their analysis finds that, even before COVID-19, one in three families was unable to meet an unforeseen jolt to normal expenses, a situation now made more perilous by the pandemic lockdowns. The authors argue for different policy responses across EU member states to strengthen people’s “financial resilience,” although educating households about financial preparedness is an across-the-board imperative.
About the Authors
Maria Demertzis is the deputy director of Bruegel, where Marta Domínguez-Jiménez is a research assistant. Annamaria Lusardi is the academic director of the George Washington University Global Financial Literacy Excellence Center.