Is the country for the rich? Why is it more expensive to live in Russia than in Europe. Mortgage: why the interest rate of Sberbank in Europe is so low Where to live sweeter
Most of you have probably heard that largest bank our country offers lower interest rates outside the Russian Federation. For example, in the Czech Republic, Sberbank offers to issue a loan at 3 percent per annum, while in Russia interest rate is 13 percent or more. Not surprisingly, such news caused a huge wave of indignation among the Russians. As a result, the leaders of Sberbank had to explain why this was happening. The first deputy chairman of the board of Sberbank, Lev Khasis, gave arguments on this matter.
How Sberbank explains the difference in rates
Sberbank has its pages in social networks and channels on various internet platforms. Any important news regarding the largest bank our country, almost never go unnoticed. The news that Sberbank offers enough profitable terms lending to citizens of European countries. A citizen of the Czech Republic or, for example, Croatia can get a loan at an interest rate 4-5 times lower than a citizen of the Russian Federation.Here is how Sberbank commented on this situation.
Firstly, not exactly Sberbank operates in these states. That is, Sberbank CZ operates in the same Czech Republic, which differs from Sberbank of Russia. And these two structures work in different countries with different economies. Secondly, our countries have different levels of inflation. If in the same Czech Republic inflation over the past few years has amounted to 1.5 percent, then in Russia it has averaged 7.2 percent over the past 5 years. And since it is tied to the level of inflation key rate, in the Czech Republic it is much lower and amounts to 1.75 percent, and in Russia the key rate is 7.25 percent. Those. almost 4 times higher.Sberbank also gives an example that in fact there is no big difference. After all, a mortgage in the Czech Republic can be taken at 3.3 percent, while in Russia the interest rate starts from 7.6 percent. That is, the difference is slightly more than 2 times. Another important argument of Sberbank is that the income on deposits in Russia is higher. If in the Czech Republic one can earn only 1.8 percent per year on a deposit, then in Russia the rate on deposits is 6.3 percent. And the last thing that Sberbank pays attention to is that if the Russian economy is stable, as in the Czech Republic, then the rates will be exactly the same.
Has Sberbank said everything?
On the one hand, it is quite convincing. But all the same, Sberbank does not finish speaking. Everyone knows very well that Sberbank enjoys a dominant position in Russian market. And due to this, the bank receives a fairly large profit. Most people keep their cash in Sberbank, and their salary cards quite popular. Thus, nothing prevents Sberbank from lowering loan rates and making them more affordable for our citizens.For example, if you reduce the interest rate by at least 1.5 times, then it will be much easier. Yes, Sberbank's profit will be lower, but the profit will still be significant. Let's take official numbers as an example. In 2018, Sberbank's net profit amounted to 831 billion rubles. And the interest income on loans is about 2 trillion rubles. From the calculation, it turns out that the average interest rate is 10.5 percent.If, however, the interest rate is reduced to at least 7 percent, then the interest income will decrease to 1.3 trillion rubles, i.e. about 700 billion rubles. But Sberbank will still be in profit, only the amount of profit will be 131 billion rubles. The question arises, why does Sberbank need such windfall profits?
But, apparently, due to the fact that more than 45 percent of the shares of Sberbank generally belong to non-residents of the Russian Federation, we can conclude that the main shareholders set themselves the goal of getting as much as possible more money. Moreover, it is difficult to imagine what amounts are flowing out of the Russian Federation. And citizens are left to take loans at the interest rates that are offered. In Russia, Sberbank is of great importance, especially in small towns and villages, and in Europe it is regular bank, which must fight for its place in the banking services market.
In all sorts of ratings and indices - prosperity, quality of life or well-being - it takes a place in the second part of the list. The countries of the Old World, for the most part, are compactly placed in the top 30 of the list. Of course, ratings can and should be treated with some degree of conventionality. But, in general, they demonstrate that Russia does not live like Europe.
Starting positions
Russia - rich country: first in the world in terms of area, second in oil production and only sixth in terms of gross domestic product calculated at parity purchasing power. The European Union, if we consider this association as a representative of the whole part of the world, on the contrary, is only the seventh in area, but the first in terms of GDP. And if we evaluate the gross domestic product per capita, then the gap will be even greater.
Praise the EU, however, is possible only with some caution. A union of 28 countries is by definition not a homogeneous union, and the conditions of life in each of its member states are far from the same. For example, in 2017, the highest average salary before taxes was in Luxembourg - over 4,700 euros. The "poorest" in this indicator is Bulgaria, where, on average, workers were paid 413 euros.
However, in the countries that are primarily thought of when comparing Russia and Europe, to average salary there are no complaints. In Austria it was equal to 2700 euros, in Belgium - 3400 euros, Germany - 3700, France - almost three thousand. And although after deducting taxes, these payments are reduced by a good third, they are still many times more than in Russia, where average income after conversion into a single European currency, it turns out to be approximately 550 euros.
Where does the money come from
There are very specific reasons for the wealth of the "core" of the European Union. The wealthiest countries in Central Europe developed prosperously from the very beginning. Thanks to the historical chance in the form of the absence of catastrophes and revolutionary upheavals for a long time, they managed to achieve a technological backlog and create a powerful economy, to meet the needs of which many peoples later worked.
In modern times, entire continents were colonized for this, and in modern times, under the pretext of European integration, countries.
Although it is not talked about openly, one of the reasons for the fifth enlargement of the European Union, which began in 2004 with the accession of 10 states and ended in 2013 with the inclusion of Croatia in the unification, is the need for trade expansion into new markets from the main European economies.
Faced with difficulties in their development, they did not find anything better than to impose their terms of "free" trade on other countries of Europe. As a result, newcomers had to face the collapse of entire sectors of the economy in a few years. But the EU as a whole began to boast that its trade with the rest of the world is one-fifth of world exports and imports, and 62% of the union's trade is carried out among themselves.
At the same time, supporting the entire machine called the “European Union” costs the founders a lot. The association's budget is formed from the contributions of the participating countries, from which the states receive payments. The biggest difference between the funds provided and allocated is in Germany, France, Great Britain and Italy, which, in fact, pay for the opportunity to impose their goods on other countries.
Weighed down by size
Russia has chosen a completely different path of development. In its history there was no expansion and colonialism in their classical sense, and new territories were often joined voluntarily. The vast area of the country that has come together as a result is both its advantage and a heavy burden.
The vastness of the state is something that requires constant care. Any neglect of such care, as happened in the 90s, instantly throws the country back in development.
In Russia, there are many factors that do not allow her to live like in Europe. These are temperature differences, and the number of time zones, of which there are 11 in the country. It is also important that there are almost three times fewer Russians than Europeans - approximately 145 million versus 510 million.
Historical factors are no less significant. The upheavals of the 20th century could not but affect the progressive development of the country, which has every reason to claim a place among world leaders.
However, the very posing of the question “why don't we live like in Europe” does not necessarily mean that it is worse in Russia. Such a comparison would be too ephemeral, because each side has its own strengths and weak sides. Here are just a few examples.
There is an opinion that the USA, Japan, Germany and others the developed countries were able to achieve a high standard of living only after they achieved, with the help of the introduction of a differentiated tax, a more equitable distribution of income.
Now taxes in Europe are in the range from 5% to 45% depending on earnings.
In Russia, they are only talking about the transition from a flat income tax to a progressive one. Now the level of personal income tax in the country is set at 13%, and the stratification between the rich and the poor is increasing. Proponents of such a rate argue that it stimulates economic growth.
Utilities
The state of affairs in Russia largely determines its wealth natural resources. Back in 2015, the cost of electricity in the country did not exceed three rubles per kWh. In Europe, this figure was much higher, since the capacities are mainly imported. In a number of states, it exceeded 20 rubles per kWh, as in Denmark (21.4) and Germany (20.5).
In the end, as it turned out, average earnings a Russian can acquire at least as much energy as a Spaniard, Italian or German.
By the way, Russia's wealth is reflected in resources and the difference in fuel costs. For Russians, gasoline costs two to three times cheaper than for Europeans.
The medicine
The average life expectancy in Russia in 2017 reached 73 years - this is an absolute record in the history of the country. In the next six years, the authorities set the task of entering the club of countries where this figure is "80+". France and Germany have been among them for a long time - primarily due to advanced medical technologies.
However, in Russia positive side the situation with child mortality differs from the countries of the Old World. In 2017, our indicator reached historical low- 5.2 deaths per thousand people, which is below the level in a number of European countries.
Russia can boast of one of the best indicators in terms of the number of doctors per 1,000 people among developed countries.
Social sphere
In 2018 living wage in Russia barely exceeded 11 thousand rubles. And from May 1, the minimum wage will also be raised to this level. These figures, of course, are difficult to compare with European ones.
For example, in 2017 the minimum wage in Luxembourg was 1999 euros, in Germany - 1498 euros, in France - 1480 euros. The situation is worse in the recently annexed Romania and Bulgaria: there the minimum wage is 275 and 235 euros, respectively, but this is also higher than Russian figures.
At the same time, according to official statistics, poverty in Russia is about 13%. In the same Germany, 19.7% of the population receive less than the required amount, and in France - 18.2%. With all this, the main products: bread, milk, eggs, meat - cost the Russians cheaper. The only difference is that food costs in Russia make up about a third of income, while in Europe they spend almost half as much for these purposes.
Pensions in most European countries depend on seniority and salary. Subject to all the conditions for old age in Germany and France, you can receive 1200 euros each - an amount that is not at all comparable to the Russian one. At the same time, Europeans for the most part cannot count on free medical care and training.
Slightly better than its neighbors, in Russia, things are going on with unemployment. We have one of the lowest rates in Europe - around 5.2%. All the largest economies of the Old World: Great Britain, Germany, Spain, Italy and France - this figure is higher. And the Spaniards have it even more than 20%.
The above examples clearly show that the difference in living conditions does not allow one to unequivocally say that the situation in Europe or Russia is worse or better. It is more logical to state that Russians live simply differently.
At the same time, one cannot but pay attention to the fact that our country is at the very beginning of its journey.
In terms of labor productivity, agriculture in Russia lags behind Europe by almost five times. This is stated in the report of the UK National Statistical Service, which in 2017 analyzed this indicator for nine sectors of the economy.
As the director of the Institute for Strategic Analysis of the FBK stated, presenting this study in Russia,
On average, labor productivity in Russia is almost three times lower than in European countries.
If we evaluate it in terms of euros per hour, then it turns out that productivity in agriculture and fisheries in Russia is 1.8 euros, while the EU average is 9.5 euros (a difference of 5.3 times). In industry and trade, it differs by almost three times: for example, productivity in Russian industry per hour is 14.1 euros, and in the EU countries - 38.9 euros. In trade, we have a productivity of 8.5 euros per hour, in the EU countries - 24.5 euros per hour.
a little better situation in financial and insurance activities - in Russia it is 24.6 euros per hour, in the EU countries - 55.7 euros, a difference of 2.3 times. The lag is least in science: 2.1 times.
If we analyze the data on labor productivity in US dollars at purchasing power parity (PPP), then Europe's backlog in terms of labor productivity will be slightly less. In particular, in agriculture - 2.5 times, in IT and communications - 1.8 times, in public administration - 1.5 times, in trade - 1.4 times.
Meanwhile, the task of increasing labor productivity is one of the priorities for Russia. This has been talked about many times Russian officials. In particular, in the May presidential decree in 2012, the task was set to increase labor productivity by 1.5 times by 2018 compared to 2011.
According to Igor Nikolaev, this task was not completed: instead of a 1.5-fold increase (by 50%), labor productivity increased by only 5.5%.
At the same time, in the new May Decree President of 2018, the task of increasing labor productivity was again set. To do this, in particular, it should grow at medium and large non-primary enterprises by at least 5% per year.
Labor productivity is now one of the national projects that is supervised by. The department began its implementation in 2017. Now 19 regions and 100 pilot enterprises are involved in it.
“The national project sets ambitious tasks for the ministry: by 2024, productivity should increase by 5% annually, over the next 6 years, it is necessary to involve a total of 10,000 enterprises in all regions of Russia,” the materials of the Ministry of Economic Development say.
The ministry even created a special department of "productivity and efficiency" for these tasks. The corresponding message about this appeared on November 16. She headed the department, who worked as an assistant to the minister, and before joining the civil service, she worked at the McKinsey consulting company.
Earlier, Opora Rossii proposed the creation of a special body that would be responsible for productivity, "since the growth of labor productivity in the country's economy is impossible without government incentives."
According to Finam analyst Alexei Korenev,
It must be admitted that labor productivity in Russia as a whole is extremely low. Only a few industries, mainly related to high-tech, can boast of efficiency comparable to Western counterparts
The backlog is generally associated with the use of outdated technologies and depreciation of equipment, insufficient quality of organization of business processes and a number of other factors.
There are also objective reasons related to climatic and geographical features Russia, says Korenev. Huge distances and difficult working conditions in a number of regions lead to higher logistics costs. The low labor mobility of Russians also has an impact, which makes the labor market less flexible.
According to the expert, the country is in dire need of cardinal economic reforms, which will qualitatively change investment attractiveness states, improve the business climate in the country and make the work of entrepreneurs more efficient.
If we compare interest rates on loans in Russia and Europe, it turns out that it is much more profitable to take a loan abroad than here.
Bets on mortgage loans in Europe almost 2 times lower than offered Russian banks, and European consumer loans are 3-4 times cheaper than Russian ones. Why is it so?
inflation rate
Many analysts of the banking market are primarily inclined to associate high percent on loans in Russia with a rapidly rising inflation rate. How can inflation affect credit? The inflation rate in Europe averages 3-4% per year, while in Russia the official inflation rate is 9-10% per year. Real inflation in our country is much higher, so banks are in no hurry to reduce interest rates on loans, guided by common sense.
Where does such high inflation come from? There is demand inflation and supply inflation. Supply inflation, which is natural for any economy, is associated with an increase in the welfare of the population and the general economic development countries. GDP (gross domestic product) is one of the most striking indicators of economic growth. But in addition to demand inflation, there is also supply inflation. It is its indicators in our country that spoil the whole picture, since supply inflation is closely related to the depreciation of fixed assets of enterprises.
Today, in our country as a whole, there is a very high degree of depreciation of fixed industrial assets - metallurgy, light industry, oil and gas industry and the agricultural sector. Obsolete equipment requires costly maintenance, which leads to higher prices for the products of this sector, which in turn leads to higher prices for all other goods, products and services in the country.
What is the relationship between inflation and interest rates? Everything is very simple: no bank can issue loans at an interest rate that is lower than the inflation rate in the country, otherwise the bank will start to work at a loss. Therefore, in order not to go bankrupt and make a profit, credit organizations try to set the interest rate slightly higher than the official inflation rate.
Loans from Russian banks
Another explanation for the fact that loans in Europe are much cheaper than in Russia is loans from Russian banks. loan funds abroad. This is a fairly common practice that almost everyone resorts to. commercial banks. European banks give loans to Russian colleagues at a slightly lower percentage than their own citizens. Russian banks then bear some of the costs of transferring this money to Russia. Having received credit money at their disposal, Russian banks make their own margin on the interest rate on the loan and issue it to Russian citizens. Thus, in order for a European loan to fall into the hands of Russian borrowers, it has to go through a large number of intermediaries and significantly increase in price.
Another feature of European loans is that they are issued with a floating interest rate, which depends on a certain international market indicator. The floating rate allows banks to reduce possible credit risks associated with changes in the global financial market. In Russia, loans with a fixed interest rate are more common, which, in addition to future inflation, includes losses from unforeseen global economic changes that affect the global lending market.
Nov 15, 2015 Gennady
You probably guessed that Russia has one of the lowest levels minimum wage labor. Now it is 11,280 rubles. Do you think there are countries in Europe where the minimum wage is lower? Let's take a look at the level of wages in European countries together.
Let's agree that we consider the level of salaries, so to speak, "on hand", i.e. net of taxes.
So, from January 1, 2019, the federal value of the minimum wage in Russia is 11,280 rubles. Of course, for different regions of the Russian Federation it may differ (but for us this is not so important now). If we subtract the standard income tax 13% of the minimum wage, we get the amount of 9813.6 rubles - this is how much an employee in Russia can receive after working for one month.
These are 135.89 € and 151.37 $.
Countries in Europe with the highest minimum wages (even after taxes)
Switzerland leads the way in terms of minimum wage. Here, if you work for a month, you will be paid a minimum of 2709 €. This is 195,605 rubles.
Following are several dwarf states with giant minimum wages: Luxembourg - €1,738 (125,493 rubles), Monaco - €1,695 (122,388.54 rubles) and San Marino - €1,583 (114,301.51 rubles).
We will not list all the countries, basically the highest salaries are concentrated in Western Europe and also in Greece. In the latter, after deducting all taxes, the minimum wage is 637 € (45,995 rubles), and only slightly less in Portugal - (44,984.10 €).
Countries with an average minimum wage (still much higher than in Russia)
The top position is occupied by Estonia - 516 € (37,258.10 rubles).
Between these two countries, most of the countries of the former communist bloc of Europe are evenly distributed: Lithuania, Latvia, Poland, Czech Republic, Croatia and so on. The lowest wages in the former Yugoslavia - all of them are included in the block of low wages along with Russia (more on them below).
Countries with salaries close to Russia and below
In Southern Europe the most low level salaries - in Macedonia: only 203 € remains for a person after taxes (14,657 rubles). All countries of the former Yugoslavia have similar figures, with the exception of Croatia, which remained one level higher. We also add Bulgaria here - the same low level.
Well, is it not so disgusting to live in Russia anymore? Someone clearly lives worse.