In 2021, social protection benefits expenditure increased in all EU Member States for which 2021 estimates are available.
The largest increases in the percentage change between 2020 and 2021 in national currencies were recorded in Latvia (+23% compared with 2020), Bulgaria (+16%) and Hungary (+10%), while the smallest were registered in Ireland and Luxembourg (both +1%) and in France, Denmark, Austria, Belgium, Finland, Italy and Estonia (all with +2%).
This information comes from early estimates on social protection expenditure published recently by Eurostat. They are the main headline indicators for the European System of integrated Social Protection Statistics (ESSPROS) and are being provided by the reporting countries on a voluntary basis.
While social protection expenditure in national currencies rose, when analyzing expenditure as a percentage of the GDP, data shows a decrease in 2021, because GDP increased more than the expenditure in social benefits in a rebound effect from the recession of 2020 due to the pandemic. In 2020, expenditure on social benefits increased, especially in the health sector and in compensations for the unemployed.
Social protection benefits expenditure as a percentage of GDP decreased in all Member States (with available early estimates), except for two, Bulgaria and Latvia, when comparing 2021 with 2020. In Bulgaria’s case, there was no change in the percentage of the GDP used for social protection benefits, remaining at 18% in 2021, while in Latvia there was an increase of 1.3 percentage points (pp) to 19% of the GDP.
Among the Member States for which 2021 estimates are available, social protection benefits expenditure as a percentage of GDP was highest in France (33% of GDP), Austria and Italy (both 32%), while it was lowest in Ireland (13%), as well as Estonia and Hungary (both 17%).
The highest decreases in 2021, compared with 2020, were registered in Estonia and Luxembourg (both -2.5 pp) and Belgium (-2.2 pp).
Old age and sickness/health care benefits made up the major part of social protection benefits in all the Member States for which data are available. Other categories included disability, survivors, family/children, unemployment, housing and social exclusion.
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