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EUROPEAN REVIEW

ISSUE 12 - Page 9

Stats and Facts

Some applicants fall behind as EU economy grows

Figures recently published by the EU statistics agency Eurostat show that some candidate countries (CC) for membership have become wealthier than the poorer Member States, while others are falling further behind. Cyprus and Slovenia now have a higher level of GDP per person than Portugal and Greece, however Bulgaria and Romania now have a lower percentage of the EU average than they did in 1996.

Member State

GDP/person

% EU Average

Applicant State

GDP/person

% EU Average

1999 (1996)

1999 (1996)

Luxembourg

38,840 (30,999)

184.0 (167.5)

Cyprus

17,100 (14,500)

81.0 (78.4)

Denmark

25,000 (22,578)

118.4 (122.0)

Slovenia

15,000 (12,200)

71.1 (65.9)

Netherlands

23,830 (19,842)

112.9 (107.2)

Czech Republic

12,500 (12,000)

59.2 (64.9)

Ireland

23,630 (18,147)

111.9 (98.1)

Hungary

10,700 (8,600)

50.7 (46.5)

Austria

23,580 (20,441)

111.7 (110.5)

Slovakia

9,800 (8,100)

46.4 (43.8)

Belgium

23,440 (20,889)

111.0 (112.9)

Poland

7,700 (6,200)

36.5 (33.5)

Germany

22,710 (20,274)

107.6 (109.6)

Estonia

7,700 (6,100)

36.5 (33.0)

Sweden

21,600 (18,526)

102.3 (100.1)

CC Average

7,400 (6,700)

35.1 (36.2)

United Kingdom

21,570 (17,900)

102.2 (96.7)

Turkey

6,500 (6,000)

30.8 (32.4)

Italy

21,160 (18,950)

100.2 (102.4)

Lithuania

6,200 (5,300)

29.7 (28.6)

Finland

21,160 (18,039)

100.2 (97.5)

Latvia

5,800 (4,700)

27.5 (25.4)

EU Average

21,110 (18,503)

100.0 (100.0)

Romania

5,700 (6,100)

27.0 (33.0)

France

20,860 (19,556)

98.8 (105.7)

Bulgaria

4,700 (4,600)

22.3 (24.9)

Spain

17,320 (14,340)

82.0 (77.3)

Portugal

15,940 (13,147)

75.5 (71.1)

Greece

14,200 (12,484)

67.3 (67.5)

In the above table the current members of the European Union are named in black with the applicants in blue. Gross Domestic Product per person is given in purchasing power standards which allow for exchange rates and price differences. The average for the candidate countries, CC Average, includes Malta.

Pensions spending in EU Member States

Eurostat has released a report which examines expenditure on pensions in the European Union countries. The figures include both old age and disability pensions. On average the spending on pensions took up 13% of EU Gross Domestic Product in 1997 compared with 11.8% in 1990. However there is a wide variation between member states ranging from 4.8% in Ireland to 16% in Italy. This can at least be partly explained by the difference in the proportion of pension-age people between countries. More than 17% of Italians are over 65 compared to less than 12% in Ireland.

Country

% of Gross Domestic Product spent on pensions

1997

1990

Ireland

4.8

5.9

Portugal

10.3

7.6

Spain

10.5

9.2

Denmark

11.2

9.6

UK

11.2

9.6

Greece

11.8

12.1

Finland

12.0

10.4

Belgium

12.1

11.5

Sweden

12.8

--.--

Luxembourg

12.8

12.2

EU average

13.0

11.8

Germany

13.2

12.0

France

13.4

12.2

Euro-zone

13.4

12.2

Netherlands

14.2

15.4

Austria

14.3

13.7

Italy

16.2

14.0

State aid to industry still high

The European Commission regards the level of state aid to industry as still too high. Its eighth annual report shows a decrease from €104.2 billion to €93 billion but there are considerable differences between member states. For instance in the manufacturing sector, which accounts for a third of all state aid, Italy spends about six times as much per employee as the United Kingdom. Commissioner Mario Monti said 'the high levels of aid give rise to concern, even if the figures show a downward trend over the years'.

Country

State aid per manufacturing employee - Euros

Country

State aid per manufacturing employee - Euros

1994-1996
1996-1998

1994-1996
1996-1998

Italy

2,419

1,955

Netherlands

702

735

Luxembourg

1,400

1,476

Austria

654

719

Ireland

909

1,456

Spain

769

691

Germany

1,941

1,434

Sweden

421

441

Denmark

1,252

1,433

UK

317

334

France

895

1,131

Portugal

263

188

Belgium

1,376

1,093

Greece

925

997

Finland

928

959

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