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Europe’s Social Protection Measures Fall Short In Combating Poverty Risks

Overview Of Divergent National Trends

The latest European Commission report, Social Protection Committee Annual Report 2025, highlights that existing social measures across Europe are not sufficiently robust to eliminate the risk of poverty among workers and the broader population. The report reveals a marked divergence among Member States: while nearly half report a significant reduction in poverty risk, almost one-third have experienced an increase.

Variations In Unemployment Benefit Uptake

Analysis indicates that in approximately half of the Member States, there has been an increase in the number of citizens receiving unemployment benefits. Particularly steep rises have been observed in countries such as Austria, Croatia, and the Netherlands. Conversely, countries including Cyprus, Estonia, Latvia, and Spain have registered declines, with three Member States showing little to no change.

Shifts In Social Welfare Distribution

The report further details that nearly half of the Member States have seen declines in the number of beneficiaries of social welfare benefits, with pronounced reductions in Estonia, Greece, Hungary, Latvia, Lithuania, and Slovakia. However, about one-third of the nations have experienced increases, notably marked in Bulgaria and Spain.

Ageing Populations And Benefit Allocations

Nine countries allocate more than half of their total social protection expenditure to old-age benefits. Italy tops this list at 59.2%, followed by Portugal (54.8%), Romania (53.2%), and Poland (52.7%). In some cases, these high allocations can be attributed to the challenges posed by an ageing population. Excluding Ireland, where disease and healthcare benefits dominate, the next highest expenditure in several countries has been in the area of healthcare, ranging from 45.0% in Ireland to around 22% in Finland, Denmark, and Italy.

Targeted Reforms For The Cultural And Self-Employed Sectors

Recent initiatives have been directed at workers in niche sectors. Belgium, Portugal, Spain, and Cyprus have enhanced the social protection regimes for artists and other cultural professionals. In Poland, legislation is underway to integrate professional artists into the social security system, backed by public funding to support their contributions.

Innovations In Self-Employment Coverage

Several reforms have addressed the needs of the self-employed. For instance, Greece and Germany have extended maternity leave benefits to self-employed women, following Italy’s lead from 2022. Malta has broadened paternity leave rights for the self-employed. Moreover, Cyprus has expanded benefits relating to workplace accidents and occupational illnesses for the self-employed, while Belgium now mandates platform companies to insure their self-employed workers against workplace accidents.

Deferred Reforms And Future Considerations

However, not all announced measures have been implemented as planned. For instance, Cyprus opted not to extend unemployment benefits to self-employed individuals at this stage, and Poland has yet to adopt its scheduled comprehensive reform for extending social protection to all workers under civil contracts.

Eurobank Wins Two Euromoney Awards Following Cyprus Merger

Eurobank has been named Cyprus’ Best Bank for 2026 by Euromoney, while also receiving the award for Best Bank for Large Corporates at the publication’s latest Awards for Excellence.

Merger Marks A Milestone

The awards recognise the bank’s performance during 2025, a year marked by the completion of the legal merger between Hellenic Bank and Eurobank Cyprus. The transaction created Eurobank Limited, which the group says is now Cyprus’ largest banking and insurance organisation, with assets exceeding €28 billion.

Euromoney’s Awards for Excellence evaluate banks’ performance over the previous calendar year, with this edition covering January 1 to December 31, 2025.

Lending, Customers And Digital Growth

Eurobank said its business lending portfolio expanded by around 17 per cent during 2025, while its customer base grew to more than 710,000 retail clients and 11,500 business customers.

The bank also continued its digital expansion, saying more than 96 per cent of transactions are now completed through digital channels, and most financing applications are submitted via its mobile app.

Expanding International Presence

Eurobank also highlighted the opening of its first representative office in India, describing the move as a step toward strengthening business links between Cyprus and India while supporting Cyprus’ role as a gateway to the European Union for Indian businesses and investors.

According to the bank, Euromoney recognised not only the successful completion of the merger but also its lending growth, digital transformation and contribution to Cyprus’ position as an international business and investment hub.

CEO On The Awards

“The Euromoney awards confirm Eurobank’s strong momentum and the successful implementation of our group’s strategy in Cyprus,” Chief Executive Michalis Louis said.

He said the merger strengthened the bank’s ability to support households, businesses and the wider economy, while highlighting continued investment in digital services and the opening of the representative office in India as key milestones during the year.

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