Brussels, 28/01/2002 (Agence Europe) - Expenditure on social protection accounted for 27.6% of GDP in the EU in 1999, the same ratio as in 1998. After increasing in the early 1990s, from 25.5% in 1990 to 28.8% in 1993, expenditure on social protection as a percentage of GDP then fell to 27.6% in 1998. These are the latest Eurostat figures in a report published on Friday on social protection in Europe between 1990 and 1999. Expenditure on the 'old age' and 'survivors' functions got the lion's share of social benefits in most of the Member States in 1999, with a weight of 46.0% in average throughout the EU. Expenditure on 'sickness, health care and disability' came second (34.9%), followed by expenditure on 'family/children' benefits (8.5%), 'unemployment' (6.8%) and 'housing and social exclusion' (3.8%).
In real terms, per capita expenditure on social protection in the EU went up by 2.4% in 1999, a slightly higher growth than in previous years (+1.5% per year between 1996 and 1999). However, in conjunction with increases in the population and GDP in volume terms in 1999, the percentage of expenditure on social protection in the GDP remained stable. In 1999 this ration ranged in the EU from 14.7% in Ireland to 32.9% in Sweden: Spain (20.0%), Luxembourg (21.9%) and Portugal (22.9%) France (30.3%), Germany (29.6%) and Denmark (29.4%). Between 1996 and 1999 expenditure as a percentage of GDP went up in Greece (+2.6 percentage points), Portugal (+1.6) and Italy (+0.5) but went down in the 12 other Member States, especially in Finland (-4.9) and Ireland (-3.1).
Financing social protection from social contributions fell overall in the 1990s throughout the EU, from 67.1% in 1990 to 60.6% of total receipts in 1999. This was partly compensated by an increase in general government contributions, with the percentage figure rising from 28.8% in 1990 to 35.7% in 1999.
Strongest per capita expenditure in Luxembourg, Denmark and Sweden
In terms of standard purchasing power (SPA), per capita expenditure in 1999 was at a European average of EUR 5,793. The highest level was in Luxembourg 8, 479, with Denmark and Sweden at more than 7,000. Lowest registered levels (lower than 4,000) were in Spain (EU minimum SPA 3,416), Ireland, Portugal and Greece. Eurostat pointed out in a press release that these disparities reflect the differences between the national social protection systems but also the specific demographic, economic, social or institutional situations in each country. Eurostat also indicated that these differences had become less acute during the 1990s given that per capita expenditure was 2.5% more than the lowest level in 1999, whereas this figure stood at 3.6% in 1990.
Eurostat has also observed that social contributions remain the main source of funding in the EU (60.6% of total receipts in 1999), their percentage share fell sharply in the 1990s, both for employers' contributions (down from 42.5% in 1990 to 37.9% in 1999). The greatest level of restructuring in the methods used to finance social protection was witnessed in Denmark and the Netherlands, where the proportion of public contributions fell respectively by 15% and 10% and in France and Italy where the level of public contributions fell by 13% and 12% respectively. General government contributions thus increased, with the figure rising from 28.% in 1990 to 35.7% in 1999.
Eurostat does, however, point out that these figures conceal some striking differences among Member States. General government contributions accounted for a larger share of receipts in two countries in 1999: Denmark (65.2%) and Ireland (59.8%). The ratio was also high in Sweden (48.9%), the United Kingdom (47.3%) and Luxembourg (46.9%). At the other extreme, social contributions accounted for more than two-thirds of receipts in Belgium (71.8%), Spain (69.2%) and France (66.8%).