OECD reveals hidden cost of Mental Health in Europe

07 May 2026

An EU co-funded report by the Organisation for Economic Co‑operation and Development (OECD) highlights that poor mental health is one of the biggest public health and economic challenges in Europe.

It is estimated to cost around €76 billion annually, representing approximately 6% of total health expenditure. Depression, anxiety, and alcohol use disorders could reduce healthy life expectancy in the EU by 2.5 years between 2025 and 2050, and lead to around 28,000 premature deaths each year.

Anxiety disorders are the most common, accounting for around 40% of cases. The OECD report warns that the real scale of mental health conditions is likely higher, considering the high percentage of undetected cases.

Women, young people, and people from lower socioeconomic backgrounds are the most affected.

Mental health issues have been rising because of societal and environmental factors, such as the COVID‑19 pandemic, geopolitical and economic instability. Problematic use of social media is also recognised as a driver, particularly among young people.

Despite existing national mental health policies in most EU countries, a treatment gap persists, with about 67.5% of people not receiving the care they need.

According to the OECD, care needs to be shifted from hospitals to community services with a preventive approach, such as primary care, schools and workplaces.