Bulgaria devotes nearly 20% of its GDP to social programs and assistance. Specifically, the country spends 19.77% of its Gross Domestic Product on social benefits, including pensions, healthcare, unemployment aid, social housing, and support for people with disabilities. Despite this, Bulgaria remains below the European Union average, where social spending has reached roughly 27% of GDP, highlighting a gap compared with member states with more extensive social systems.
EU nations overall increased their social spending in 2024, with the total rise approaching 7%. Finland, France, and Austria lead the Union in generosity, each dedicating around 32% of GDP to social benefits. At the other end, Ireland spends only about 12%, largely due to its younger population and GDP distortions caused by multinational companies leveraging its favorable tax policies.
Pensions account for the largest share of social expenditure across Europe, totaling approximately €2 trillion, followed by healthcare and hospital services at nearly €1.5 trillion. Family and child benefits absorb around €0.4 trillion, while support for people with disabilities amounts to about €0.3 trillion. Austria spends the highest proportion on pensions at 14.7% of GDP, closely followed by Italy at 14.6% and Finland at 14.5%. Germany tops healthcare spending at 9.9%, with France and the Netherlands each allocating 9.5%. France also leads in unemployment benefits at 1.75% of GDP, followed by Finland (1.65%) and Spain (1.5%). Housing support remains a critical issue, with Finland at 0.99%, Ireland at 0.72%, and Germany at 0.63%.
While Western Europe dominates overall social expenditure, some Eastern European nations are catching up. Estonia recorded the fastest growth in social spending in 2024, nearly 20%, primarily due to inflation indexing and wage increases rather than policy expansion. Croatia and Romania also saw significant growth, with increases of 18% and 17.5% respectively, reflecting a broader trend of rising social allocations in countries that traditionally spent less.