Globalisation and technological evolution are drivers of change, but the dramatic consequence of slow adjustment of national economies is further exacerbated by the dramatic and structural demographic change in Europe. Low fertility rates, the continuous extension of life expectancy and the retirement of the baby boom generations will in the coming decades exert professional, economic, budgetary and social consequences.
The impact of ageing population on real economic activity feeds through many channels. A recent survey by the European Commission (EC) and the Economic Policy Committee (EPC) has focused on the labour market, education, long-term care and health care as well as pensions. The main finding is that between 2004 and 2011, both demographic and employment developments will be supportive of growth.