Report on Romania’s Social Protection Expenditure and its Implications for Sustainable Development Goals (SDGs)

Executive Summary: National Spending and SDG Alignment

A 2023 analysis based on Eurostat data reveals that Romania’s allocation for social protection stood at 12.8% of its Gross Domestic Product (GDP), the lowest proportion among European Union member states. This level of investment significantly hampers progress towards key Sustainable Development Goals (SDGs), particularly SDG 1 (No Poverty) and SDG 10 (Reduced Inequalities). The state’s capacity to redistribute income and support vulnerable populations is severely constrained, placing it far below the EU average.

• Romania: 12.8% of GDP
• EU Average: Significantly higher, with leading nations like Finland (25.7%), France (23.4%), and Austria (21.4%) demonstrating a stronger commitment to social welfare systems.
• Other Low-Allocation Countries: Hungary (12.3%), Malta (9.7%), and Ireland (8.1%).

Projections for 2025 indicate a further reduction in social spending, driven by the phasing out of energy support schemes and fiscal consolidation measures. This trajectory moves Romania further from its SDG commitments.

Analysis of Deficiencies in Key Social Sectors

The report identifies critical underperformance in specific areas of social protection, directly impacting targeted SDGs. The inadequate funding for unemployment and housing benefits undermines national efforts to achieve sustainable and inclusive growth.

Unemployment Benefits and SDG 8: Decent Work and Economic Growth

In 2023, Romania allocated only 0.2% of its social protection budget to unemployment benefits, the lowest in the EU. This minimal support system fails to provide an adequate safety net for those out of work, directly contravening the principles of SDG 8 (Decent Work and Economic Growth).

• Romania: 0.2% of social spending
• Comparative EU Figures: Spain (6.22%), France (5.64%), and Lithuania (5.24%)

Social Housing and SDG 11: Sustainable Cities and Communities

Expenditure on social housing was recorded at a mere 0.04% of the total social protection budget. This severe lack of investment obstructs progress on SDG 11 (Sustainable Cities and Communities), which calls for access to adequate, safe, and affordable housing for all.

• Romania: 0.04% of social spending (second lowest in the EU)
• Comparative EU Figures: Bulgaria (0%), Croatia (0.01%), and Poland (0.12%)

Per Capita Expenditure and Human Impact

The disparity is further highlighted by per capita spending. In 2022, Romania’s allocation of EUR 1,766 per person was the second lowest in the EU, starkly contrasting with the EU average of EUR 8,212. This low figure reflects a significant gap in providing essential support, impacting SDG 1 (No Poverty) and SDG 3 (Good Health and Well-being) for its citizens.

A comparison with leading EU nations underscores the scale of the deficit:

1. Denmark: EUR 15,368 per capita
2. Sweden: EUR 12,253 per capita
3. Netherlands: EUR 11,708 per capita
4. France: EUR 11,462 per capita
5. Finland: EUR 11,414 per capita
6. Germany: EUR 11,341 per capita
7. Austria: EUR 11,283 per capita

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article on Romania’s social protection spending touches upon several Sustainable Development Goals (SDGs) that relate to poverty, inequality, social support systems, and basic services. The following SDGs are directly relevant:

• SDG 1: No Poverty – This goal aims to end poverty in all its forms everywhere. The article’s focus on social protection spending, which includes support for vulnerable groups, pensions, and disability benefits, is central to SDG 1.
• SDG 10: Reduced Inequalities – This goal focuses on reducing inequality within and among countries. The article highlights the significant disparity between Romania’s social spending and that of other EU nations, pointing to a failure in adopting fiscal and social policies to achieve greater equality.
• SDG 8: Decent Work and Economic Growth – This goal promotes sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all. The specific mention of underfunding for unemployment benefits connects directly to the support systems necessary for those who are not in full employment.
• SDG 11: Sustainable Cities and Communities – This goal aims to make cities and human settlements inclusive, safe, resilient, and sustainable. The article’s data on the extremely low expenditure on social housing is directly related to ensuring access to adequate and affordable housing for all.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the issues discussed, the following specific targets can be identified:

1. SDG 1: No Poverty

   • Target 1.3: “Implement nationally appropriate social protection systems and measures for all, including floors, and by 2030 achieve substantial coverage of the poor and the vulnerable.”
     
     Explanation: The article is entirely focused on Romania’s “social protection spending,” which is the primary mechanism for implementing the systems mentioned in this target. The report that Romania allocated “just 12.8% of its GDP to social protection spending” indicates a low level of implementation compared to the EU average, directly addressing the scope of this target.

2. SDG 10: Reduced Inequalities

   • Target 10.4: “Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality.”
     
     Explanation: The article’s core subject is the analysis of Romania’s social protection policy and its fiscal allocation. The data showing Romania as having the “lowest proportion [of GDP allocated to social protection] among European Union member states” demonstrates a policy choice that fails to “progressively achieve greater equality” when compared to its peers.

3. SDG 8: Decent Work and Economic Growth

   • Target 8.5: “By 2030, achieve full and productive employment and decent work for all…”
     
     Explanation: While the target focuses on achieving employment, the support systems for the unemployed are a crucial component. The article highlights a significant gap in this area, stating that “Romania allocated just 0.2% of its total social protection spending to unemployment benefits, the lowest in the EU.” This lack of a safety net undermines the broader goal of decent work for all.

4. SDG 11: Sustainable Cities and Communities

   • Target 11.1: “By 2030, ensure access for all to adequate, safe and affordable housing and basic services…”
     
     Explanation: The article directly addresses this target by pointing out Romania’s severe underinvestment in housing. The finding that Romania “spent just 0.04% of its total social protection budget” on “social housing” shows a lack of progress towards ensuring access to adequate and affordable housing for its citizens.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

Yes, the article provides several quantitative indicators that can be used to measure progress towards the identified targets.

1. For SDG 1 (Target 1.3) and SDG 10 (Target 10.4):

   • Indicator: Proportion of GDP allocated to social protection spending.
     
     Data from article: The article states that “Romania allocated just 12.8% of its GDP to social protection spending in 2023,” which is a direct measure of government expenditure on social protection systems.
   • Indicator: Per capita social protection expenditure.
     
     Data from article: The article provides this exact figure: “In terms of per capita social protection expenditure, Romania allocated EUR 1,766 per person in 2022.” This measures the financial commitment on an individual level.

2. For SDG 8 (Target 8.5):

   • Indicator: Proportion of total social protection spending allocated to unemployment benefits.
     
     Data from article: The article specifies that in 2023, “Romania allocated just 0.2% of its total social protection spending to unemployment benefits,” providing a clear metric for the level of support for the unemployed.

3. For SDG 11 (Target 11.1):

   • Indicator: Proportion of total social protection budget spent on social housing.
     
     Data from article: The article provides a precise figure for this indicator, stating that “for social housing, Romania spent just 0.04% of its total social protection budget.”

4. Summary of SDGs, Targets, and Indicators

Source: romania-insider.com