Only a few weeks ago, many European countries were hoping their more affluent citizens would by now have started spending nest eggs built up during the pandemic to trigger a consumerled recovery in the regions economy.

But with the spread of COVID19 prompting new lockdowns across the continent and vaccine campaigns behind schedule, it is still unclear when or indeed if record levels of private savings will finally convert into a muchneeded spending boom.

Daniel Krupka, managing director of a technology think tank based in Berlin, is a case in point. After Germany on Monday extended its lockdown, he cancelled a oneweek family holiday on the Baltic Sea island of Hiddensee booked for April.

We probably would have spent up to 2,000 euros, but this wont happen now, Krupka said.

Maybe we can spend a week on Hiddensee later in the year, but Im also thinking about using the money now for bringing down our mortgage with an extra repayment to the bank.

While the pandemic has either threatened or destroyed the livelihoods of millions, those lucky enough to have kept working have in many cases bolstered their savings accounts as national restrictions deprive them of opportunities to spend their cash.

In Germany, savings as a proportion of disposable incomes rose to a record 16.2 last year compared to 10.9 in 2019. In France, that rate stood at 22.2 in the fourth quarter of last year, second only to a record 27.5 in the second quarter. Savings in Italy and Spain have also…