EPC report on the overall assessment of the impact of ageing on public finances

31 October 2003

The Economic Policy Committee (EPC) published a report endorsed by the Council on 4th November showing that large demographic changes with significant budgetary effects will take place in coming decades even if there is some uncertainty on the precise scale of their impact.

Overall, the projections of the EPC show that on the basis of current policies, public spending on age-related public expenditures (notably pensions, health care and long-term care) could increase by between 3 and 7 percentage points of GDP by 2050, with the effects taking hold as of 2010.

The EPC report highlights the need for a three-pronged strategy to meet the economic and budgetary consequences of ageing populations, consisting of: faster pace of debt reduction (especially in high debt countries); measures to raise employment rates especially of older workers and women; and reform of pensions and health care systems.

EPC report

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