ECONOMIC PROBLEMS OF EUROPEAN UNION CAUSED BY THE DEMOGRAPHIC AGEING

Abstract

The purpose of this paper is to offer a realistic perspective upon the imminent situation of demographic ageing issue in European Union. The forecasts are not reasons to major concern for the society but rather to become more responsible and not to neglect a problem that could affect our future. The demographic overview of Europe for 2011 – 2060 shows low birth rates, an increase in life expectancy and migration flows having an impact on population. As a result, the parent generation will no longer completely be replaced by the next generation of children and the narrowed active population will have to sustain a large number of persons far advanced in the age. Economic consequences of this social trend, such as increased expenditures on pensions, extended health care costs and the employment problems, are also discussed in order to define the best policy option available.

Keywords

• ageing
• births
• life expectancy
• migration
• economic impact
• policy options