Brussels, 29/11/2012 (Agence Europe) - Following a rising curve in the number of unemployed in the EU, spending for social protection of the EU27 rose from an average of 26.1% of GDP in 2007 to 29.4% in 2010. In nominal terms, this equates to a rise of nearly 10%, Eurostat - the statistical office of the EU - states.
According to the latest data published on Tuesday 27 November, it is France, Denmark and the Netherlands that dedicate the most to social protection - respectively 33.8%, 33.3% and 32.1% of GDP. As Eurostat says, “the EU27 average continued to mask major disparities between member states”. While France dedicates more than 30% of its GDP to social benefits - like six other member states - many countries from Eastern Europe - like Estonia, Poland and Slovakia - only pay at the level of 18%-19%. The different living standards certainly play a part, but the systems of social protection are not constructed in the same way everywhere and nor are the demographic pyramids heterogeneous, Eurostat states.
The average progression in nominal terms of 10% between 2007 and 2010 particularly reflects the rise in spending for the biggest social benefits - like retirement pensions - which alone represent almost half of the total expenditure - but also healthcare (37%) and family allowances (8%). Having separated off unemployment benefits (6% of the total), the increase in this period is 33%.
This last piece of data reflects the increase in the unemployment rate over this period and the fact that many of the active population were kept out of the labour market for lengthy periods. This is a trend which should also be confirmed for 2011 and 2012, as the unemployment rate has risen strongly by about 1.3% per year on average in the EU. (JK/transl.fl)