Welfare: spending rises from 693 to 715 billion, pensions absorb half of the resources

The Unipol report highlights that welfare spending in Italy is projected to rise from 693 billion euros in 2025 to 715 billion in 2026, with pensions consuming nearly half of this budget. The pension expenditure accounts for 16.3% of GDP, exceeding the Eurozone average of 12.5%. In contrast, allocations for healthcare, social policies, and education are below Eurozone averages. The demographic challenge, marked by declining birth rates and an aging population, threatens the sustainability of the welfare system. The report emphasizes the need to support birth rates, enhance labor market participation, and adapt welfare policies to diverse family structures, particularly in regions with significant service disparities.