This ratio will deteriorate substantially in the future - it is estimated to go to two workers for every pensioner in 2050. Such a huge increase has many macroeconomic consequences, including fiscal ones. Conservative projections indicate that annual government expenditure on pensions and health care in the EU could increase in the order of 4 to 8 percentage points of GDP.
Unless there is further policy action, public expenditure would rise significantly, resulting in increases in the public deficit and debt ratios. BIS Review 5/2003  3  There is every reason to prevent such a scenario from occurring. High deficits and unsustainable public debt levels have serious adverse macroeconomic consequences.