Eu Government Expenditure by Function 2018
Eu Government Expenditure by Function 2018
Social protection expenditure can be further broken down into a number of detailed groups. The group ‘old age’,
which includes pensions, accounted for 10.4% of GDP in the EU in 2018. It made up the largest part of social
protection expenditure in all EU Member States, with the highest shares being registered in Finland (13.6%), followed
by France and Italy (both 13.3%), Greece (13.2%) as well as Austria (12.4%). In contrast, Ireland (3.2%) recorded
the lowest share, followed by Cyprus (6.1%), Lithuania (6.2%) and the Netherlands (6.4%).
Not all the functions of government expenditure evolved the same between 2007 and 2018. Some of the functions
have a natural tendency to be counter-cyclical, even without a change in policy. For example, government
expenditure on unemployment benefits (part of social protection) is more prone to have a natural counter-cyclical
evolution than other functions, such as government expenditure on education. During an economic crisis, more
people become unemployed, whereas the number of pupils and students is more affected by demographic changes.
Between 2007 and 2009, expenditure on unemployment in the EU increased from 1.5% of GDP to 1.9%, gradually
decreasing to stand at 1.3% in 2018. Social protection expenditure as a whole increased from 17.6% of GDP (2007)
to 19.8% (2009), standing at 19.2% of GDP in 2018. In the same period, government expenditure on education in
the EU rose from 4.7% of GDP (2007) to 5.1% (2009), and then gradually decreased to 4.6% (2018).
Social protection and health expenditure increased in comparison to other general government
expenditure
‘Social protection’ and ‘health’ are the only two functions whose shares in total government expenditure increased
during the period from 2007 to 2018. In the EU, social protection expenditure increased its share in total expenditure
from 38.7% to 41.2%, while expenditure on health increased from 14.3% to 15.0% of total expenditure. In contrast,
government expenditure on ‘public services’, for example, fell from 15.0% of total expenditure in 2007 to 12.9% in
2018.
Over this period, government expenditure on ‘public order and safety’ and ‘environmental protection’ remained
unchanged.
Geographical information
The European Union (EU27) includes Belgium, Bulgaria, Czechia, Denmark, Germany, Estonia, Ireland, Greece, Spain, France,
Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, the Netherlands, Austria, Poland, Portugal, Romania,
Slovenia, Slovakia, Finland and Sweden.
The euro area consists of Belgium, Germany, Estonia, Ireland, Greece, Spain, France, Italy, Cyprus, Latvia, Lithuania,
Luxembourg, Malta, the Netherlands, Austria, Portugal, Slovenia, Slovakia and Finland.
The United Kingdom left the European Union on 31 January 2020. Information on dissemination of European statistics from 1
February 2020 is published on the Eurostat website.