Cyprus sees biggest rise in social protection spending in EU

Social protection benefits expenditure as a percentage of GDP between 2019 and 2020 has increased in almost all EU Member States, with the largest jump recorded in Cyprus and estimated at +2.2 per cent.

The island was followed by Belgium (+1.3 per cent) and Czechia (+1.2 per cent). The only country that recorded a decrease was Poland (-0.3 per cent).

However, this is partly because nominal GDP has also decreased as a result of the Covid-19 pandemic.

The Eurostat report was calculated on the basis of social protection expenditures, the main headline indicators for the European System of integrated Social Protection Statistics (ESSPROS), which are being provided by the reporting countries on a voluntary basis.

The ESSPROS distinguishes four main categories of expenditure. The first is expenditure on social benefits, that is, resources which are transferred to beneficiaries in the form of cash or goods and services. The second category of expenditure relates to administration costs charged to the scheme. The third and fourth categories deal with transfers to other schemes and miscellaneous expenditure.