Germany, among other European economic 'superpowers' is under the flawed allusion that they are somehow immune to the intense effects of a total
economic meltdown. It's a problem that has been addressed in governments Europe-wide, but never over-stressed or over exposed, perhaps when it should
be.
THE AGING POPULATION
The European Union's 2009
Ageing Report which is meant to assess
the Economic and budgetary projections for the EU-27 Member States from the year 2008 to 2060, shows damning statistics where the growing number of
pensioners will inevitably strain these 'old world' countries to the brink and we have seen what is needed to alleviate the risks of a European
partner going broke, bailouts, bailouts, bailouts.
How damaging will an increasing working population be? The experts have tended to use the words 'grave', 'catastrophic' even 'cataclysmic' to
describe the problem. The workforce is set to drop dramatically due to this 'greying' to the point where I see it possible that there will be a
shift in 'economic superpowers' in the coming decades.
The basic numbers leave little doubt over how high the stakes really are. By 2050, ever-lengthening lifespans and slumping birthrates mean that
Europe’s population of working age will drop by 38 million. At the same time, numbers aged 65 and over will rise by 40 million. That will swell
the EU’s pensioner population to more than 100 million. The number of workers for every individual of 65-plus will fall from more than three to
fewer than two.
Ageing population brings grave problems
"The European countries are aging in a world that is becoming younger," Mr. Frey said in a telephone interview. "And in a global economy, they're
not going to share in the energy and vitality that comes with a younger population."
...
"In reality, a legal retirement age of 80 is what we should aim at," Erich Streissler, an Austrian economist, wrote in a newspaper article.
Aging
Europe Finds Its Pensions Running Out
Well... I think the point I'm trying to make is that there is a MAJOR problem here, and there is no real solution, other than somehow having a mass
immigration of a certain demographic (25-35).
The French are taking action though, and the people aren't happy:
French unions hope to unleash their wrath on Nicolas Sarkozy tomorrow, as they protest over plans to rob workers of their cherished right to retire at
60.
...
"It is a logical option for the government. We are going to increase the legal age [of retirement]," said employment minister Eric Woerth on French
television today, refusing to confirm speculation the new threshold would be 62 or 63. "As one lives longer, it is only logical that your working
life should also be longer."
French unions turn wrath on Sarkozy pension reforms Dated
26 May 2010.
The reason used of course, is that you are living longer therefore you should work longer. I don't see much of a logical problem in that reasoning,
except the people aren't being told why it is actually NECESSARY for them to work longer. This will start happening around Europe on a much larger
scale.
This is a global problem, although it is most evident in Europe.
Here are where the main problems in Europe:
5. MALTA
Pension cost compared to GDP in 2007: 7.2%
Pension cost compared to GDP in 2035: 9.7%
Change in working age population by 2020: -7.1%
4. GREECE
Pension cost compared to GDP in 2007: 12%
Pension cost compared to GDP in 2035: 19%
Change in working age population by 2020: -3.9%
3. FRANCE
Pension cost compared to GDP in 2007: 13%
Pension cost compared to GDP in 2035: 14%
Change in working age population by 2020: -5.5%
2. FINLAND
Pension cost compared to GDP in 2007: 10%
Pension cost compared to GDP in 2035: 14%
Change in working age population by 2020: -8.5%
1. SLOVENIA
Pension cost compared to GDP in 2007: 9.9%
Pension cost compared to GDP in 2035: 15%
Change in working age population by 2020: -6.6%
Source; European Report, linked above.
CONCLUSION... THE PROBLEM IS A HUGE ONE. THESE COUNTRIES NEED A MASS INJECTION OF A CERTAIN AGE DEMOGRAPHIC OR WHAT IS PARTIALLY HAPPENING
TO GREECE RIGHT NOW WILL CONTINUALLY HAPPEN TO EUROPE IN THE NEXT HALF CENTURY.
)
