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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.

Google Cloud Outage Disrupts Banking And Digital Services Across The UK

A power outage at a Google Cloud data centre near London disrupted services across the UK on Tuesday, affecting banks, businesses and other digital platforms. Google said the incident was caused by a power event at its cloud operations, with full recovery expected by around 1300 GMT.

The disruption began at 0608 GMT and affected Google Cloud services in the europe-west2 region, which is hosted in London. In an initial update, the company reported elevated error rates and intermittent network failures across multiple services as engineers worked to restore operations.

Banking Services Hit By The Disruption

Revolut was among the most visibly affected companies, with customers reporting problems with ATM withdrawals, bank transfers and card top-ups. A source close to the matter linked the issues to the Google Cloud outage.

Traditional banks also reported disruptions. Lloyds said some customers were experiencing problems with its app and online banking, while HSBC confirmed difficulties accessing its services. HSBC added that it was monitoring the situation and noted that other organisations were affected as well.

Disruption Spreads Beyond Finance

Downdetector, which tracks online service disruptions, recorded hundreds of reports involving other businesses, including property website Rightmove and the Royal Mail postal service. The reports suggested that the outage was affecting multiple parts of the UK’s digital economy.

The incident highlights the risks facing businesses that depend on shared cloud infrastructure. Even a temporary failure at a single provider can disrupt services across several sectors, from banking and payments to logistics and consumer platforms.

Companies Reassure Customers

Revolut said it had been working to resolve the issue since it was identified and apologised to affected customers. The company also confirmed that customers’ money and data remained safe.

As cloud platforms underpin an increasing share of digital commerce, the outage illustrates how disruptions to critical infrastructure can spread far beyond the provider itself, affecting businesses and customers across the economy.

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