Social protection spending in Romania wallows at the lowest in the EU

Romania is spending less than nearly anywhere else in the EU on social protection, according to the latest figures from EU statistics office Eurostat. Not only are the total sums spent low, but the percentages of the country's resources dedicated to social protection and the amounts spent per capita are also among the lowest in Europe - even taking into account the differences in wages and cost of living. Although published yesterday, November 27, the figures refer back to 2010, when Romania's social protection expenditure was 17.6 percent of GDP – the lowest percentage in the EU. Neighboring Bulgaria, as well as Estonia, Lithuania, Latvia, Slovakia and Poland also spent less than 20 percent of GDP on social protection in 2010. At the other end of the spectrum France, Denmark, The Netherlands, Germany, Finland, Austria and Sweden all spent more than 30 percent of GDP on social protection in 2010. Overall, the percentages of GDP spent on social protection in the EU jumped up from 2007 into the post crisis period. In the EU as a whole, 26.1 percent of GDP went to social protection in 2007, while by 2009 the figure had jumped up 29.6 percent before falling back slightly to 29.4 percent in 2010. Social protection spending in Romania also climbed significantly over the same period, going from 13.6 percent of GDP in 2007 to 17.1 percent in 2009 and 17.6 percent in 2010. Looking at the amounts of the different types of benefits paid in Romania, around half of the total went on old age and survivors benefits. For healthcare and disability, Romania spent just over 34 percent of the total benefits budget, while just under 10 percent went on family and childcare payouts. The smallest percentages of the social protection budget were for unemployment, 3.2 percent, and housing and social exclusion, 1.7 percent. Liam Lever, liam@romania-insider.com (photo source: sxc.hu)