Still I am convinced that there are ways to increase productivity in the public services, too. The use of information technology and parallel re-engineering of work processes and organisations, as well as incentive based wage systems and benchmarking with best practices can bring improvements also in the productivity in the public sector.
One way is to expose part of the public services to private competition, when provision of public services does not require that they are all produced by public sector. However, the main question is, whether the economic growth will be strong enough to bear the heavy cost burden that the ageing causes.