The European Commission cautioned today that EU member states will struggle financially as the population ages and the number of people dependent on pension income grows unless they revise some of their pension policies.
The EU's public debt will rise to about 200% percent of gross domestic product by 2050 if left unchecked, although balanced budgets would bring the figure to roughly 80% of GDP, the report said. That is still higher than the EU's target of 60%, however.
The commission found that six European countries — Czech Republic, Greece, Cyprus, Hungary, Portugal and Slovenia — are at high risk for budgetary difficulties. Belgium, Germany, Spain, France, Ireland, Italy, Luxembourg, Malta, Slovakia and the United Kingdom are at medium risk. Denmark, Estonia, Latvia, Lithuania, Netherlands, Austria, Poland, Finland and Sweden are considered to be at low risk, the report said.
The commission is hosting a European Demographic Forum, designed to help develop better financial policies related to aging, Oct. 30-31.
