By Martin Banks - 31st January 2008
EU commissioner Joaquin Almunia says urgent action is needed to tackle Europe’s looming demographic ‘crunch’.
Speaking in Brussels on Thursday, the Spanish official said that a rapidly ageing population will pose a “substantial” economic and social challenge.
One of the possible solutions, he said, would be to end compulsory retirement policies, “where they are no longer justified.”
The former Spanish government minister said this could help boost the number of older people in the workforce.
By the middle of this century, he said it was predicted that two people in work will support every pensioner – half of the current ratio.
Almunia said the EU had been successful in “considerably” increasing the number of people over the age of 50 in the workplace, from 36 per cent in 2000 to 44 per cent in 2006.
“This shows that the many challenges of future demographic changes can be met with the right policies,” he said.
“However, much more needs to be done and done soon. Some member states have acted but postponing policy choices now will only make them more difficult to implement later.”
Almunia, responsible for economic and monetary affairs, was addressing a one-day summit on demographics, organised by the Brussels-based think tank, Friends of Europe.
Opening the high-profile event, FoE secretary-general Giles Merritt questioned whether the EU and member states realised the urgency with which the issue needed to be tackled.
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