BRUSSELS, Belgium / EuroWire.IO / – Social protection spending in the European Union equalled 27.5% of GDP in 2025, down 0.2 percentage points from the previous year, Eurostat said. Total expenditure on social protection benefits reached €5,183 billion, an increase of 4.9% from 2024. The preliminary figures were published by the EU statistical office on November 6. Spending rose in euro terms in every member state. An earlier Eurostat estimate had put 2024 spending at €4,925 billion, before revisions.
Austria spent the most relative to the size of its economy, with social protection benefits equal to 32.4% of GDP. Finland followed with 32.2% and France with 32.1%. At the other end of the scale were Ireland at 11.7%, Malta at 13.8% and Hungary at 16.7%. Austria, Finland and France have consistently ranked among the EU’s biggest spenders on social protection. The gap between the top and bottom was more than 20 percentage points.
Old-age benefits were the largest item at €2,152 billion, representing 41.5% of total spending. Old-age benefits consist mainly of pensions. Sickness and health care benefits reached €1,556 billion, or 30.0%. The remaining spending covered disability, survivors, family and children, unemployment, housing and social exclusion not classified elsewhere. Old-age and health benefits together accounted for 71.5% of the total. Combined, they totalled €3,708 billion. The other categories together accounted for 28.5%.
Croatia records fastest growth
Croatia recorded the largest increase in social benefits spending in euro terms, at 15.4% compared with 2024. Bulgaria followed with growth of 12.1% and Lithuania with 11.6%. The smallest increases were in Greece, at 0.6%, Romania, at 0.7%, and Finland, at 1.3%. Cyprus raised spending by 5.1% to €6.59 billion, equal to 18.07% of GDP, Cyprus Mail reported. Every EU country spent more than in 2024.
The fall in the EU-wide ratio means nominal economic output grew faster than social benefits spending during 2025. The figures are preliminary estimates and may be revised as more complete national data become available. Eurostat compiles the statistics under the European system of integrated social protection statistics, known as ESSPROS. Social benefits are financed by social contributions and general taxation. The EU economy expanded by 0.5% in the third quarter of 2026.
Commission pledges stronger social model
The European Commission has pledged to strengthen Europe’s unique social model in its 2027 work programme, adopted on November 4. The programme sets out 23 initiatives and also focuses on competitiveness, energy prices, defence and support for Ukraine. Social protection systems in the EU provide support to people facing risks such as old age, illness, disability and unemployment. Spending levels vary widely between countries, reflecting differences in national systems.
Ireland’s low ratio partly reflects its high GDP, which is boosted by multinational companies based in the country. Malta and Hungary also spend less than a fifth of GDP on social benefits. In contrast, social protection benefits account for almost a third of economic output in Austria, Finland and France. Across the EU, spending averaged 27.5% of GDP. The EU’s total social benefits bill rose by around €240 billion in 2025.