Ecofin Council: Ministers to Discuss Challenges Posed by Ageing Population

European Social Policy, February 18, 2006 | Go to article overview

Ecofin Council: Ministers to Discuss Challenges Posed by Ageing Population


The document, the broad outlines of which were approved by the Commission on February 8, analyses the impact of an ageing population and its consequences for spending on pensions, health, education and employment in the 25 the EU member states over the period 2004-2050.

Declining population of working age.

The ageing trend is due to falling birth rates and longer life expectancy. The problem is that whilst the population of working age (15-64 years) is expected to fall by some 48 million inhabitants by 2050, the number of people over 65 is projected to increase by 58 million (+77%). Even if the EU employment rate were to rise from 63% in 2003 to 70% in 2020, in line with Lisbon Strategy objectives, the overall population of working age would nevertheless continue to decline dangerously. There is likely to be a shortfall of some 10 million people on the labour market by 2050.

Impact on growth.

Average growth in the EU15 member states is likely to follow the same downward trend (whereas experts are forecasting growth of about 2.2% over the period 2004-2010, this rate is likely to fall to 1.8% between 2011 and 2030 and to 1.3% between 2031 and 2050). The same causes will produce the same effect in the 10 new member states. That said, the report warns that the situation might be even more dramatic in view of the likely fall in employability and labour productivity (two key elements for economic growth). Whereas employability should have a slightly positive impact on growth up to 2010, it will have no impact on growth between 2011 in 2030, and may even become a negative factor in subsequent years up to 2050.

Lisbon agenda maintained.

In spite of this catastrophic long-term scenario, the Lisbon strategy objectives are naturally maintained by experts, notably regarding increases in employment rates and labour productivity. The euro-zone is a particular concern since employment rates are not expected to reach 70% before 2035 (2020 for the rest of the EU). One consequence is that further structural reforms will need to be introduced in the short term.

Significant rise in pensions burden.

The report looks at several case scenarios. In five member states projections forecast a cut in the pensions burden, whilst in nine countries, the increase is not expected to exceed 5% over the period. Six countries are by contrast a major concern for experts. The sustainability of public finances in these countries is clearly called into question: this is the case of Cyprus, where the pensions burden is expected to increase by 12.

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Ecofin Council: Ministers to Discuss Challenges Posed by Ageing Population
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.