Two-thirds of Irish people believe the worst of the economic crisis has yet to come with almost a quarter saying they are not confident of having a job in two years’ time. Meanwhile, the latest European Quality of Life Survey shows that Europe’s households are considerably better protected from the ravages of the financial crisis than its banks because only a minority of homeowners have mortgages. Outright home ownership is highest in Eastern Europe and of the 70 per cent who are homeowners, two-thirds have no mortgages.
The Irish Times reports today that a new Eurobarometer survey on employment and the economic crisis, highlights the prevailing pessimistic mood among the Irish public.
The survey, which will be published by the European Commission today, shows that just 21 per cent of Irish people say the economic crisis has now reached its peak and things will start to recover. In contrast, two thirds of respondents say that the worst is yet to come.
The newspaper says almost a quarter of people, some 24 per cent, say they are not confident of having a job in two years time while 19 per cent say they are not confident of holding on to their jobs in the coming months.
This represents a major drop in confidence since the last major Eurobarometer survey on employment was conducted in June 2006 when just 5 per cent of Irish people said they were not confident of keeping their job in the coming months.
Across the EU the mood is marginally more optimistic with 28 per cent of Europeans saying they feel the crisis has reached its peak and things are recovering little by little. Some 18 per cent of EU respondents to the survey fear they won’t have a job in two years time.
European households
Preliminary findings from the latest secondary analysis of the European Quality of Life Survey, suggest that even in Eastern Europe, where there is most concern about households’ vulnerabilities to foreign currency mortgages, the effects of any renewed crisis would be muted because of the low proportion of households with mortgages.
The Dublin-based European Foundation for the Improvement of Living and Working Conditions (data pending updating on site at time of our posting), a European Union body, in the update of its Quality of Life Survey of 27,000 people, suggests that while rising unemployment will lead to increased financial strains, the majority of European households will be able to meet their mortgage debts.
Professor Richard Rose of the University of Aberdeen told the Financial Times: “Whereas financial institutions carry the risks of all mortgage loans, the survey shows among the 70 per cent who are homeowners, two-thirds have no mortgage to pay off.”
In Eastern Europe, only 8 per cent of households have mortgages, with 70 per cent owning their homes outright.
In Romania, Bulgaria and Lithuania, more than 80 per cent of household own their homes outright.
In Italy, more than 60 per cent of homeowners own their homes outright.
Ireland is below 40 per cent - - behind Spain, France, Finland, Latvia, Portugal and Belgium.
Germany, Denmark, Sweden and the Netherlands - - the lowest at 7 per cent - - have the smallest number of households with outright ownership.
Ireland is among 7 of 20 EU countries with the highest proportion of households with mortgages.
