European Commission Warns Member Countries on Long-Term Costs of Aging

Posted on 2009-10-19 06:00:00 in Demographics |

In mid-October 2009, The European Commission released a 175-page report on the status of public finances of its member countries.  Twelve EU countries were identified as being at long-term high risk, primarily as a result of projected increases in federally subsidized health expenditures.  Ireland ranks as the #1 at-risk country, with a 15.0% sustainability gap.  The United Kingdom ranks at 12.4%, and Spain at 11.8%.  Ten countries, including France, Germany, Italy and Poland, were identified as medium-risk.  The European Commission estimated that EU budget deficits would stand at 7% of gross domestic product in 2010 ((rising from 6% in 2009), with the looming issues of rising long-term pension costs and other age-related expenditures as primary considerations.

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"Brussels warns on long-term costs of ageing," FT.com, 15 October 2009; http://www.ft.com/cms/s/0/423f2eba-b979-11de-abac-00144feab49a.html


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