Old Europe
New World Asian Newspaper
November 2004
When the question is asked - what is the point of European Union, one of the
most important answers is that often member states (all 25 of them) can
collectively plan ahead in a way that individual countries are often too afraid
or cautious to. This is the case with one of biggest problems facing Europe
todaY - the rapidly ageing population.
In contrast to the US and most of the developing world the EU faces a
daunting demographic challenge. For example, in Italy the median age will reach
50 as early as 2025 (from 40) now. Europe's rapid ageing, including in the UK,
will inflict economic pain - mainly because of the decline in the number of
people of working age dragging down economic growth. As the numbers of workers
fall the number of dependents will rise massively.
The soaring elderly dependency ratio will test European budgets to the limit.
According to the European Commission, adverse demographic change will push up
public spending by up to 8 percent by 2040. Will EU taxpayers foot the bill?
The EU, more that individual European nations, is now grasping the nettle. In
my recent report in the European Parliament on Immigration, Integration and
Employment, I said that one of many solutions will be more "managed migration"
from the developing world of both skilled and unskilled workers. But this in
turn can produce "brain drain" effects on developing nations. Notice how in the
Philippines, doctors are re-training as nurses to feed the West's need for
health. And so the Philippine's health sector suffers.
There are no easy answers to the demographic EU "time bomb" but inertia and
denial of this issue should not be on the agenda.
Claude Ajit Moraes MEP is Labour MEP for London. He is President of the
European Parliament's Anti-Racism Intergroup and Vice President of the European
Parliament's Intergroup on Ageing.
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