By All Things Nordic | 9 November 2025
The Nordic countries continue to rank among Europe’s leaders in social welfare investment, according to new data from Eurostat covering 2024. While total social protection spending across the European Union rose by 6.9 percent year-on-year, reaching €4.9 trillion, Nordic governments maintained some of the highest welfare-to-GDP ratios in Europe—especially in Finland and Sweden—even as other countries posted only modest growth.
💶 Europe’s Social Spending Landscape
Across the EU, public expenditure on social benefits—including pensions, healthcare, unemployment, disability, housing and family support—represented 27.3 percent of EU GDP in 2024, up 0.6 points from 2023.
The largest components of that total were:
Old-age and survivors’ pensions: €2.04 trillion (41.5%)
Healthcare and medical assistance: €1.46 trillion (29.7%)
France (31.9%) and Austria (31.8%) led continental Europe, while Ireland (12.4%), Malta (13.4%) and Hungary (16.6%) recorded the lowest ratios.
🇫🇮 Finland at the Top, Denmark Sees Slow Growth
Among the Nordic countries, Finland again recorded the highest social spending share in the EU, at 32.5 percent of GDP. The country’s extensive pension and healthcare systems remain the backbone of its welfare model, and recent increases reflect both ageing demographics and expanded healthcare funding in the wake of its 2023 regional reform.
Denmark, by contrast, showed one of the smallest nominal increases in the Union, at +4.3 percent, identical to Italy’s. Yet its overall welfare system remains robust, with total expenditure close to 28 percent of GDP. Denmark’s model focuses on efficient, tax-financed services—particularly healthcare and early-childhood education—keeping spending stable rather than expanding rapidly.
🇸🇪 Sweden and 🇳🇴 Norway Maintain High but Stable Ratios
Although Norway is outside the EU, its welfare levels mirror those of its Nordic neighbours: social protection spending is estimated near 30 percent of GDP, supported by oil-fund revenues that cushion healthcare and pensions. Sweden, meanwhile, maintained spending at roughly 30–31 percent of GDP, balancing ageing-related costs with strong employment and tax revenue.
📈 Broader Nordic Context
Across the Nordic region, public social expenditure remains a defining feature of national identity. The Nordic welfare model combines universal access to healthcare and education with income security through pensions and unemployment benefits. Despite differing economic conditions, these countries share a commitment to redistributive policies aimed at reducing inequality and maintaining high labour-force participation. While Eurostat’s 2024 data show slower growth rates compared with pandemic-era surges, the Nordics continue to outspend most of Europe on social protection per capita, reflecting both high living standards and the political consensus that welfare is a collective investment rather than a fiscal burden.
🧭 Outlook
As Europe faces demographic shifts, energy-transition costs, and inflationary pressures, the Nordic model’s sustainability will be closely watched. Its efficiency—anchored in transparency, digital administration, and strong public trust—may serve as a blueprint for balancing fiscal prudence with social resilience.
For now, Finland leads Europe’s social-spending charts, while Denmark’s stable but modest growth underscores a mature welfare state that values quality and sustainability over expansion.
Read more on Ec.Europa.eu
