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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.

Cyprus Property Valuers Advocate Investment Funds For Affordable Housing Initiative

A Strategic Investment for Social Stability

Cyprus’ property valuers association has put forward a compelling proposal for the creation of 500 new affordable housing units. The association recommends that investment funds, including the social insurance fund and other private initiatives, actively participate in the development process. This strategic move is intended to secure the long-term financial stability required for such a vital infrastructure project.

An Innovative Financial Model

Polys Kourousides, President of the association, emphasized that the financial structure should be designed to avoid additional strain on the state budget. “The model should prioritize sustainability and efficiency, especially since the private sector is tasked with the delivery of these housing units,” Kourousides stated. His remarks highlight the importance of blending public interest with private sector expertise to effectively address pressing social challenges.

Addressing a Growing Social Need

Kourousides further described the initiative as a timely response to one of the most urgent social issues of our time. The association has long championed the use of state-owned land for affordable housing projects, underlining its commitment to socially balanced urban development. In addition, the association remains prepared to assist the government by providing essential technical and scientific perspectives to shape a modern, efficient housing framework.

Looking Ahead

This proposal underscores the growing recognition among industry leaders that innovative financial models and public-private collaboration are essential to address housing shortages. With a clear roadmap and the right investment partners, Cyprus may well set a benchmark in sustainable and inclusive urban development.

Uol
Aretilaw firm
The Future Forbes Realty Global Properties
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