Malta is spending around half the EU average on social protection measures and stands as one of the lowest spenders on the underprivileged in the entire bloc, figures released by Eurostat yesterday show.
Not only that, but Malta’s expenditure on social protection, measured as a percentage of gross domestic product has fallen from 19.2% of GDP in 2012 to 16.1 of GDP in 2017, with the main drop occurring between 2016 and 2017.
The EU average for 2017, meanwhile, was 27.9 % of GDP.
Malta is, in fact, the EU’s sixth-lowest spender on social protection and the only ones lower than us were Estonia, Ireland, Latvia, Lithuania and Romania.
According to the figures released yesterday, Malta is spending €4,800 per person as expressed in terms of Purchasing Power Standards, which eliminates price level differences between countries, compared to the EU average of €8,400.
When it comes to the spread of social benefits by function, the figures show a number of discrepancies between Malta and its EU peers.
For example, Malta spends 1.9% on housing and social exclusion compared to the EU average of four per cent.
When it comes to family and children, Malta is distributing 5.5% of benefits in this area compared to the 8.7% EU average. We are also spending exactly half the EU average on unemployment – 2.2% compared to the EU average of 4.4%.
When it comes to sickness, healthcare and disability, Malta is distributing slightly more of the pie than the EU average – 37.8% compared to the 37.1% EU average.
And it is only in the area of old age and survivors where Malta is distributing far more than the EU average – 52.6% in Malta as against the 45.8% EU average.
Overall, social protection expenditure in the EU stood at 27.9% of GDP in 2017, compared with Malta’s 16.1% of GDP.
Across the EU, the two main sources of funding of social protection were social contributions, making up 55% of total receipts, and general government contributions from taxes at 40%.
The EU average continued to mask major disparities between Member States. In 2017, social protection expenditure represented over 30% of GDP in France (34%), Denmark (32%) and Finland (31%). They were followed by Germany (close to 30%), Austria, the Netherlands, Italy, Belgium and Sweden (all 29%). In contrast, social protection expenditure stood below 20% of GDP in Romania (14%), Latvia, Ireland and Lithuania (all 15%), Estonia and Malta (both 16%), Bulgaria (17%), Slovakia and Hungary (both 18%), Cyprus and Czechia (both 19%).
Social protection expenditure per capita varies substantially
In 2017, social protection expenditure per capita in PPS showed large differences between EU Member States. After Luxembourg, the highest expenditure per capita were recorded in Denmark (almost 12 thousand PPS), Germany, the Netherlands, Austria and France (all around 11 thousand PPS). In contrast, the lowest expenditure per capita were registered in Bulgaria, Romania and Latvia (3 thousand PPS or less). Malta is at 4.8.
Highest share for old age and survivors benefits in Greece, Portugal and Italy
On average in the EU, old age & survivors benefits accounted for nearly 46% of total social benefits in 2017 and made up the major part of social protection benefits in nearly all Member States. The share of old age and survivors benefits in the total was highest in Greece (63%), Portugal and Italy (both 58%), Romania and Cyprus (both 56%), while it was lowest in Ireland (34%), Germany and Denmark (39%) and Luxembourg (40%).
Sickness/health care and disability benefits accounted for 37% of total social benefits on average in the EU in 2017. Amongst Member States, the share of these benefits ranged from 23% in Cyprus and 26% in Greece to 45% in Ireland, 44% in Croatia and Germany, 43% in the Netherlands and 42% in Estonia.
Family and children benefits accounted for slightly less than 9% of total social benefits on average in the EU in 2017, unemployment benefits for 4%, and housing and social exclusion benefits also for 4%. The share of family benefits in the total ranged from 4% in the Netherlands and 5% in Portugal and Spain to over 15% in Luxembourg and 13% in Poland and Estonia. Unemployment benefits varied between less than 1% in Romania and 1% in the United Kingdom to 9% in Ireland and 8% in Spain. Housing and social exclusion benefits ranged from 1% or less in Poland, Portugal and Estonia to 9% in Cyprus and 7% in Denmark, the Netherlands and the United Kingdom.