A new study by the Mercer Group, a consulting firm that annually ranks the major cities around the globe, has named Vienna, Austria as having the best living standard in the world.

The Mercer 2011 Quality of Living Survey is dominated by European cities, with four of the top five located on that continent. Zurich, Switzerland ranked second — followed by Auckland, New Zealand and the German cities of Munich and Dusseldorf. European cities earned more than half of the top 25 rankings.

The survey covers more than 200 cities and ranks living conditions in 10 categories: Political and Social Environment, Economic Environment, Socio-Cultural Environment, Medical and Health Considerations, Schools and Education, Natural Environment, Public Services and Transport, Recreation, Consumer Goods and Housing.

Mercer produces the annual survey to help governments and multi-national companies fairly compensate employees when they are sent on international assignments.

The top U.S. city, Honolulu, Hawaii, was 29th on the list, while Baghdad, Iraq took last place in both quality of living and personal safety.