While leafing through the Eurostat database for public services I noticed something that is “a bit” peculiar to say the least. Here's the gist of it.
Let's talk about education first. The Greek state's expenditures for the provision of educational services are lower than the Euro Area average. Here’s the chart.
When we look at compensation of employees of the sector though the picture is somewhat different. The said differential was always narrower but since 2003 the differential was almost cut down to zero and in 2008-2009 compensation of employees (as a % of GDP) for Greece was higher than the Euro Area average.
Next stop, health services. Here too total expenditure for health services is lower for Greece when compared to the Euro Area average.
Again, when we get down to employees’ compensation, things are different.
Almost for the length of the time interval shown in the chart, compensation of employees (always as a % of GDP) was higher for Greece, in stark contrast with overall expenditure.
In my humble opinion it really boils down to what the ulterior goal of the service provider is. I’m not going to say anything else, I’ll let you draw your own conclusions…