Germany spends 41% of its total expenditure on social security, more than any other European country, including the Nordic nations, according to a study by the German Institute for Economic Research (IW). According to the study, published by the 'Rheinische Post' newspaper, about half of that money is allocated to pension insurance. Nordic countries, as well as Austria and Switzerland, allocate 40% of their total expenditure to social security, while the rate in Benelux countries (Belgium, the Netherlands, Luxembourg) is 38%, and the European Union average is 39%. In the health sector, Germany, along with Benelux and Nordic countries, leads (16%). Amid the debate on pensions and at the start of the budget week, the institute, which is close to employers, advised in its study summary to 'resist any further increase in government activity, especially in social spending,' noting that this also applies to health sector spending. The institute studied general government spending and various sectors in Germany from 2001 to 2023. For comparison in Western Europe, the institute used data from Benelux countries, Austria, and Switzerland, as well as Northern European countries (Denmark, Sweden, Norway, Finland, Iceland), which are relatively similar to Germany in terms of economic development and cultural characteristics.
