Live Long and Prosper? Demographic Change and Europe’s Pensions Crisis

10 November 2015

The recent financial and economic crisis has exacerbated the funding shortfalls of Europe’s public pension systems. However, although the ageing of Europe’s population is a general trend observable in all member states, its scale and timing will impact differently on a national level. By analysing demographic trends and utilising a case study approach, this research highlights the challenges facing national pension systems in the years ahead.

Politically, it will be on the basis of national preferences that further pension system reform will occur in the future. With this in mind, it is too narrow-minded to take a solely fisc al perspective from which to develop European reform strategies which meet the requirements for both fiscal balance and sustainable public pension systems. Therefore, the EU should support national reform strategies by monitoring public pension reforms as well as improving the single market.

However, public pension policy should remain a national competence. In addition, the examples of the Italian and British case studies highlight that long term pension reform should be innovative and involve public, occupational and private elements.