Romania ranks lowest in EU for social protection spending as share of GDP

Romania allocated just 12.8% of its GDP to social protection spending in 2023, the lowest proportion among European Union member states, according to data published by the Social Monitor, a project of the Friedrich Ebert Foundation Romania, based on Eurostat figures.

This places Romania well below the EU average and far behind the highest-ranking countries such as Finland (25.7%), France (23.4%), and Austria (21.4%). The only countries with similarly low allocations are Hungary (12.3%), Malta (9.7%), and Ireland, which recorded the lowest ratio at 8.1%.

Social protection spending covers a range of public expenditures, including pensions, disability benefits, unemployment support, family allowances, social housing, and other forms of assistance. It reflects the state’s role in redistributing income and supporting vulnerable groups.

Romania’s social spending is expected to decline further in 2025 due to the withdrawal of energy compensation schemes and the government’s broader efforts to reduce the budget deficit. The report highlights two categories where Romania is particularly underperforming: unemployment benefits and social housing.

In 2023, Romania allocated just 0.2% of its total social protection spending to unemployment benefits, the lowest in the EU, alongside Poland (0.82%) and Malta (0.87%). In contrast, Spain dedicated 6.22%, followed by France (5.64%) and Lithuania (5.24%).

For social housing, Romania spent just 0.04% of its total social protection budget, placing it second to last in the EU, only ahead of Bulgaria (0%). Croatia (0.01%) and Poland (0.12%) were also near the bottom.

In terms of per capita social protection expenditure, Romania allocated EUR 1,766 per person in 2022, with only Bulgaria spending less (EUR 1,631). These amounts are significantly lower than the EU average of EUR 8,212 and far behind Western and Nordic countries. 

Denmark led with EUR 15,368 per capita, followed by Sweden (EUR 12,253), Finland (EUR 11,414), Germany (EUR 11,341), France (EUR 11,462), the Netherlands (EUR 11,708), and Austria (EUR 11,283).

iulian@romania-insider.com

(Photo source: Dreamstime.com)