THE LISBON STRATEGY AS A REMEDY FOR POPULATION AGEING.
"There is a direct link between the success of the revised Lisbon Strategy and ageing populations." This declaration by Luxembourg's Prime Minister and Eurogroup President Jean-Claude Juncker on February 14 shows that euro-zone Ministers are well aware of the risks ageing poses for growth and employment in Europe, precisely the focus of the Lisbon Strategy.
The report on the subject presented to Ministers makes for alarming reading for the euro-zone and the European Union as a whole: ageing acts as a veritable brake on economic growth and employment. It risks leading to an increase in public spending by 2050 of the order of 4% of GDP and, without policy changes, growth rates will be practically halved.
Structural reforms are therefore more necessary than ever, especially on labour markets. Ministers agreed as much. Indeed, Jean-Claude Juncker is adamant that reforms will need to be confirmed and extended over the coming years through effective implementation of the Lisbon Strategy.
That said, two scenarios clearly emerge. That of...
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