It’s not just a market

After 1st May 2004, which marked the transition of the European Union from 15 to 25 members, “the new challenge of the enlarged Europe is that of the construction of a common space, harmonized in economic, social and institutional life”, and since “the structure of the Union is even more characterized today by disparities in many fields (at the administrative, demographic and economic level), the construction of the new Europe must take account of all the pillars on which the Union can rest”. It is therefore important to pay attention not just to the economy, but also to “such important questions as culture, the institutions and social policies”. This is the diagnosis of Eurispes (the Italian Institute of Political, Economic and Social Studies), which in recent days presented a survey on social policies in European states. According to Eurispes, “one of the major challenges of the new Europe is that of reaching an integration not only at the economic level, but also at the level of social policies”. But this is not happening: “under the pressure of international tensions and the financial difficulties of individual members, the attention of states” to these issues “is weakening”. THE METHOD. The Eurispes study refers to a statistical base relating to the five-year period 1999-2003, mainly consisting of Eurostat data, integrated with statistics linked to gross domestic product (GDP) published by OCSE, and enriched by estimates and projections of Eurispes for the years 2004, 2005 and 2006. The Eurostat data on expenditure for social protection were calculated according to the method of the European Integrated Statistics System on social protection (Esspros) which classifies social benefits according to eight functions: health, disability, old age, survivors (pensions and benefits), family and childhood, unemployment, housing, social exclusion. “The data analysed – concludes the Eurispes survey – show altogether great differences in the formulation of social policies in Europe”. SOCIAL EXPENDITURE AND GDP. The first finding to emerge, points out Eurispes, “is the constant growth of social expenditure in relation to GDP” in the period in question. For the Fifteen it is, on average, equivalent to 31.5%, with high points rising slightly above this in France and Germany, 29.3% in Holland, 28% in the UK, and 26.4% in Italy. Among the countries selected – observe the analysts -, Holland, albeit in the presence of a fairly high level of expenditure, has maintained virtually constant its level of social expenditure, while the UK during the same period registered the highest increase in expenditure, rising from 26.3% of GDP in 1999 to 28% in 2006″. Analysing the social expenditure sector by sector in the five countries considered, the figures suggest that the two sectors of major expenditure are those relating to the elderly and healthcare. In Germany expenditure on the elderly constitutes 13.6% of GDP, followed by Italy with 12.8%. As regards healthcare expenditure, France is at the top of the table (9.2% of GDP), followed by Holland (8.9%) and the UK (8.7%). The UK and France also allocate significant funds to housing policies, respectively 1.5% and 0.8% of GDP. In Italy, in spite of the housing crisis, the related item of expenditure cannot even be represented because it is “close to zero”. INDIVIDUAL ITEMS. The Eurispes research also offers a classification of European countries (also non-members of the EU), compiled on the basis of the percentage composition of overall social expenditure: giving to this latter a value of 100, the classification shows the quota allocated by each country to each individual item. Thus, to disability Norway allocates 16.7% of total expenditure, Iceland 13.5%, Luxembourg 13.2%. At the bottom of the table are France (4.5%) and Cyprus (3.8%), but the rather low percentages registered practically everywhere show, according to Eurispes, “a picture of generalized delay in Europe in tackling the problems linked to the condition of the disabled”. The quota relating to the family and childhood is equivalent to 16.3% in Luxembourg, 14.3% in Ireland, and 13% in Denmark. At the bottom of the table are Italy and Spain with, respectively, 3.8% and 2.8%. In benefits for the unemployed Spain allocates 12.8% of total expenditure, Belgium 11.4%, Finland and Denmark 9.8%. In last place is Estonia with 1.5%. “So variegated and differentiated a scenario – concludes the survey – ought to make us reflect on the need to recalibrate the structure of social expenditure and favour a more harmonious development of society as a whole”.