This feature of the U.S. economy explains, together with the relatively more unsatisfactory demographics of Europe, why European growth has been disappointing in comparison with the U.S. during the past decade. Let me elaborate a bit on the role of demographic developments for the euro area.
The importance of demographic factors as a source of growth in the euro area has been gradually decreasing over time during the past three decades. Although in the short to medium run demographic factors are not projected to become too grave a problem, in the longer run they are likely to become a major source of concern.