Can Europe afford to grow old

One of a series of articles in this issue of Finance and Development under the theme 'Europe's conundrum', which focus on the economic challenges facing the European Union following the accession of 10 new members on May 1, 2004.

This article, looks at the implications of population aging in Europe, which is expected to create major fiscal headaches as early as 2010. The biggest problem is unsound pension systems. To address this problem, Europe will have to choose a strategy that may involve increasing pension contribution rates and reducing benefits, among other options.

http://www.imf.org/external/pubs/ft/fandd/2004/06/index.htm http://www.imf.org/external/pubs/ft/fandd/2004/06/index.htm

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