Population Ageing and the Sustainability of Public Finances in EMU

  • Marco Buti
  • Declan Costello


Over the coming decades, the size and age-profile of the population of European Union Member States will undergo substantial changes due to a fall in fertility rates to levels well below what is needed for a natural replacement of the population and significant increases in life expectancy. These changes will pose economic, budgetary and social challenges for policy makers, especially managing the increased pressure for spending on public pensions and health care. Several studies have shown that the impact on public finances in EU countries could be particularly severe given that public pensions systems are for the most part financed on a pay-asyou-go (PAYG) basis and high levels of public debt.2


Member State Euro Area Public Debt Debt Ratio Budget Balance 
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© Springer Science+Business Media Dordrecht 2001

Authors and Affiliations

  • Marco Buti
  • Declan Costello

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