The Republic spends a smaller percentage of gross domestic product (GDP) on social protection than other EU states, with spending on social benefits at just above half of the EU average, writes Denis Staunton in Brussels

A report by Eurostat, the EU's statistical office, found that average Irish social welfare benefits represent a lower level of purchasing power for recipients than those in most member-states.

The report found, however, that the State's per capita expenditure on social protection rose more sharply than in most EU states between 1992 and 2001. Social protection spending in the State fell from 17.8 per cent of GDP in 1996 to 14.6 per cent in 2001 - a fall the report credits to strong economic growth.

The 15 EU states spend an average of 27.5 per cent of GDP on social protection, which the report defines as benefits for sickness/healthcare, disability, old age, survivors, family/children, unemployment, housing and other forms of exclusion.

Government contributions account for 58.3 per cent of social protection spending in the State, compared to an EU average of 36 per cent.