The macroeconomic impact of ageing, EU immigration policy and pension expenditures


David Pinkus
 Jacob Funk Kirkegaard

The European Union population is ageing increasingly rapidly, with dependency ratios and shares of the elderly in the total population rising across the continent. While aggregate projected increases in age-related public spending in the EU are manageable, there are substantial differences between EU countries. A low probability of a sustained rebound in fertility rates effectively leaves the EU with continuingly high positive net-migration levels as the only route to mitigate the economic effects of ageing. EU potential growth rates are set to fall, driven down by shrinking labour forces and likely slowing total factor productivity, adding to the fiscal challenges from an ageing population.

Πηγή: www.bruegel.org

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