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Financial Times (London), March
18, 2005
EU urges action
on falling population
Author : Sarah Laitner
DATELINE: BRUSSELS
Brussels yesterday spelt out the extent of the
European Union's stark population decline and
ageing workforce, calling for swift reform
to address its "unprecedented" demographic
change.
By 2030 an extra 40m people - equivalent to the
population of Spain - will be above retirement
age, the European Commission said as it detailed
the EU's ageing population, dwindling birth
rate and retiring baby-boomers.
Tackling the bloc's dem-ographic difficulties
is seen as central to helping growth in its
economies, which face shortages of millions
of workers over the coming decades.
Vladimir Spidla, employment commissioner, said
immigration was helping to prop up the EU's
population, which would grow slightly to 470m
in 2025 before falling.
But the working age population is due to fall
by 21m between 2005 and 2030. By contrast,
the US population is likely to rise until 2050.
Europeans have a fertility rate of 1.5, which
is below the level needed to replace the population
and only two of the bloc's 25 countries - Malta
and Cyprus - have growing populations.
Mr Spidla, the former Czech prime minister, said
immigration alone would not solve the EU's
demographic problems.
He said people were discouraged from having more
children by difficulties in finding housing,
late entry into employment, family- unfriendly
environments and job instability. Pro-family
policies, particularly on childcare, leave
for both parents and family benefits were needed.
Reform of pensions and increased productivity
should also be part of the EU's response.
"It is clear we are going to need pensions
reform and that people's working lives are
going to have to be extended," Mr Spidla
said.
He added that with increasing numbers of elderly
people, countries should help to support fam-ilies,
social services and community networks in caring
for them.
The Commission will in September start considering
legislative options to address the problems.
<< Financial Times -- 3/18/05 >>
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