1. FALLING BIRTH & AGEING IN EU
By : Group 3
Presentation Day 3

2. OVERVIEW Interesting Facts Demographic Trends in EU
Impact of the Ageing European Population
How to Solve The Problems?

3. INTERESTING FACTS
Europe is the only region in the world whose total population is projected to shrink by 2050;
In 2014, the EU population stood at 507 million people, of whom only 169 million (or 33.3%) were children or young people (aged under 30).
The number of elderly people (aged 65 or more) has been exceeding the number of children (aged under 15) since 2004
Germany and Italy have the highest percentage of old people and the lowest percentage of young people.(1/5 people is over 65; 1/8 people is under 14)
Today, in the EU, there are 4 workers per retiree. In 2050, there will be 2 workers per retiree

4. DEMOGRAPHIC TRENDS IN EU

5. DEMOGRAPHIC TRENDS IN EU

6. What Causes Ageing Population?
Increased Life Expectancy ->  improved lifestyles, advances in healthcare
Decreased mortality rate
Slower Birth Rate
Post-War Baby Boomer

7. Impact of Ageing Population
Increase in the dependency ratio  high tax rates
Increase in government spending on health care and pensions.
Shortage of workers. An ageing population could lead to a shortage of workers and hence push up wages causing wage inflation.
Changing sectors within the economy -> bigger market for goods and services
Higher savings for pensions may reduce capital investment.

8. How to Solve ? POLICY ADJUSTMENT
…. that will require many adjustments to be made by individual people, by governments and by society as a whole …
Implementing flexible immigration policy - integrating larger number of immigrants into the labor market and attracting talented young workers from outside EU
Raising productivity and economic performance by investing in education and research
Creating flexible jobs and better working conditions for older people
Extending working age
Reforming pension system