Research: Germany spends the most on social needs in Europe
24 November 13:11
In Germany, social spending of 41% of the federal budget is higher than in other European countries, including the Nordic states. These are the findings of a study by the Institute for German Economics in Cologne (IW), which was reported by the Rheinische Post on its website, "Komersant Ukrainian" reports.
For comparison: the Nordic countries, as well as Austria and Switzerland, spend 40% of their budgets on social needs, Belgium, the Netherlands, and Luxembourg – 38%. The EU average is 39%.
Half of social spending is on pensions
The authors of the study point out that almost half of all social expenditures from the German federal budget are for pensions. Healthcare costs account for 16%. The corresponding figure is at the same level in the Nordic and Benelux countries. It is the highest in Europe.
Public administration costs are also relatively high in Germany. During the period under study, they increased from 7.2 to 11 percent. Meanwhile, spending on education in Germany is only 9.3% of the state budget. For comparison: Austria and Switzerland, according to the study, spend almost 50 percentage points more on these purposes.
Germany’s defense needs in the period under study – from 2001 to 2023 – accounted for a total of 2.3% of the federal budget, which corresponds to 1.1% of GDP.
