122.9 billion euros annually

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The direct and indirect avoidable costs associated with mental health problems in Europe, analyzing 28 countries, amount to 122.9 billion euros annually. This is one of the main conclusions of the last Mental Health Headway Reportpresented in the European Parliament by the Italian think tank The European House – Ambrosetti, in collaboration with Angelini Pharma. According to the report, greater investment in mental health services not only would improve care and well-being of millions of citizens, but would also allow save more than a quarter of current spending in this areawhich reaches 430,000 million euros annually.

The figure of 122.9 billion euroswhich encompasses both direct and indirect costs, highlights the magnitude of the challenge facing European countries. According to the Headway report, if the health systems of the European Union (EU) and the United Kingdom increased the proportion of their budgets allocated to mental health, they could generate combined direct savings of €79.4 billion annually. These savings would come from the rreduction in the use of medical and hospital services, avoiding prolonged hospitalizations and expensive treatments in emergency care.

If EU and UK health systems increase the amount of their budgets allocated to mental health, they could generate combined direct savings of €79.4 billion annually

But the potential savings don’t end there. The report also details that, with greater investment in mental health, Up to 43.5 billion euros in indirect costs could be avoided every year. These costs are related to the pressure that social services are currently under, including the provision of long-term support and the low productivity of those people who, due to mental disorders, are excluded from the labor market.

One of the clearest messages conveyed by the Headway report is that every euro invested in the prevention and treatment of mental health problems would generate an economic return of 4.5 euros. Despite this opportunity, only 7 of the 28 European countries currently meet the recommended investment levels. To meet the minimum threshold, low- and middle-income countries would need to allocate at least 6.5% of their health budget to mental health, while high-income countries would need to allocate at least 10%.

The Headway report reflects that each euro invested in this area would generate an economic return of 4.5 euros

The report also specifies that European countries should increase its investment in mental health by 27.4 billion euros annually to reach these optimal levels. According to Jacopo Andreoseexecutive director of Angelini Pharmathis additional investment “It would not only provide significant savings to European governments, but would also reduce pressure on social services, increase labor productivity and strengthen health systems.”.

And, as this document reflects, mental health not only represents a financial issue, but encompasses all aspects of people’s lives. Thus, the Headway report insists that greater investment would not only reduce economic costs, but would also have a direct impact on the quality of life of European citizens. Mental disorders, which already account for a third of the disease burden in Europe, could be addressed more effectively, reducing suicide rates, minimizing reliance on emergency and long-term care servicesand promoting a greater labor inclusion.

Ruggero Razzamember of European Parliamentemphasizes that “Mental health is not just a medical issue, but a concern that impacts all aspects of our lives, from education to employment. YoInvesting in public strategies that take care of mental well-being in a proactive and coordinated way is essential to build a Europe where every person has the opportunity to live fully, both mentally and physically”.

Comparison of mental health systems

The Headway report not only provides a detailed analysis of avoidable costs, it compares the state of mental health across the 27 EU member states and the UK, using 54 key performance indicators. These data allow assess the level of mental health care in areas such as work environment, schools and society in general. Since 2022, Headway has expanded its analysis to include neurological diseases, in order to cover all health areas related to brain well-being.

Elisa Milanihealth project coordinator at The European House – Ambrosetti (TEHA), highlights that this analysis work “rreveals the multiple factors that influence mental health and that can lead to disorders such as depression and anxiety; only through a comprehensive and multidisciplinary approach can offer the best results”.

Furthermore, the publication reveals modest progress in the capacity of European health systems to respond to growing mental well-being needs. On average, European countries have improved their response capacity by 7% compared to 2022raising its score from 4.9 to 5.2. However, the prevalence of disorders such as depression has increased by 14% and the anxiety 20%compared to pre-pandemic levels.

Despite these advances, most European countries still do not reach the investment levels necessary to adequately address the growing demand for mental health care. For this reason, Andreose concludes that “Greater investment in mental health would not only strengthen health systems, but also would create the foundations for a healthier and more equitable future for everyone in Europe”.

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