Government spending as a share of Gross Domestic Product (GDP) by the member states of the European has consistently exceeded 45 percent over the period since 1995, reaching over 50 percent of annual production in 1995 and 1996, as well as the crisis years of 2009, 2020, and 2021. Government spending as a share of GDP should automatically expand during recessions and crises, as GDP shrinks, while the 'automatic stabilizers' of unemployment insurance and other welfare benefits expand.
Due to the COVID-19 pandemic, governments in the EU also expanded their spending on health care services and economic affairs, as they attempted to support their domestic healthcare systems, while stimulating economic activity in the private sector through targeted subsidies.
Total government expenditure as a share of Gross Domestic Product in the European Union from 1995 to 2021, by function
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Eurostat. (February 22, 2023). Total government expenditure as a share of Gross Domestic Product in the European Union from 1995 to 2021, by function [Graph]. In Statista. Retrieved November 22, 2024, from https://www.statista.com/statistics/1379868/government-expenditure-eu-spending-share-gdp-function/
Eurostat. "Total government expenditure as a share of Gross Domestic Product in the European Union from 1995 to 2021, by function ." Chart. February 22, 2023. Statista. Accessed November 22, 2024. https://www.statista.com/statistics/1379868/government-expenditure-eu-spending-share-gdp-function/
Eurostat. (2023). Total government expenditure as a share of Gross Domestic Product in the European Union from 1995 to 2021, by function . Statista. Statista Inc.. Accessed: November 22, 2024. https://www.statista.com/statistics/1379868/government-expenditure-eu-spending-share-gdp-function/
Eurostat. "Total Government Expenditure as a Share of Gross Domestic Product in The European Union from 1995 to 2021, by Function ." Statista, Statista Inc., 22 Feb 2023, https://www.statista.com/statistics/1379868/government-expenditure-eu-spending-share-gdp-function/
Eurostat, Total government expenditure as a share of Gross Domestic Product in the European Union from 1995 to 2021, by function Statista, https://www.statista.com/statistics/1379868/government-expenditure-eu-spending-share-gdp-function/ (last visited November 22, 2024)
Total government expenditure as a share of Gross Domestic Product in the European Union from 1995 to 2021, by function [Graph], Eurostat, February 22, 2023. [Online]. Available: https://www.statista.com/statistics/1379868/government-expenditure-eu-spending-share-gdp-function/