Commission plots baby boom to offset ageing EU

The European Commission is to propose next month changing policies on childcare and encouraging older people to stay in work longer to offset the effect on the European economy of the declining birth-rate.

The proposal will encourage member states to make it easier for women to return to work after they have had children by providing childcare support and more flexible working arrangements. "Public policy can change the birth-rate. If you facilitate families to have more than one child and make it easier for women to go back to work it can be done," said a Commission spokeswoman.

In a speech this week (17 April) to a Berlin conference on demographic change, Vladimír Špidla, commissioner for employment and social affairs, said that extending the age of retirement and allowing older people to work part-time as a gradual progression towards retirement could be ways to keep them in the workplace longer. "We should move away from the culture and practice of early retirement…we need to make remaining in professional life attractive and possible for workers in later life," he said.

The European Trade Union Confederation, following a request by the Commission, has suggested reconciling family and work life by standardising parental leave across the EU, strengthening guarantees on payment during maternity leave, promoting education and sabbatical leave and protecting domestic workers, often migrant women workers who help families with cleaning, childcare and caring for elderly relatives.

A second part of the consultation, which also involves employers’ representatives, is due out next month.

The Commission plans to set up later this year a group of experts to look at the issue of the declining birth-rate. "This would be about the exchange of best practice which would help member states to pick measures to address this problem which would help their system best," said the spokeswoman.

Member states are also working towards a target of having childcare for 33% of children under the age of three by 2010.

Figures show that the number of people over the age of 65 is expected almost to double from 16.7% in 2005 to 29.9% in 2050 while the number of people over the age of 80 will almost triple from 4.1% in 2005 to 11.4% in 2050.

A study from the German Institute for Economic Research shows that the ageing population could present new economic opportunities for European countries by adapting goods and services to the needs of the elderly. The study shows people over 60 are currently responsible for one-third of private consumption in Germany and that this share could increase to 40% by 2050. Spending by people over 75 has almost doubled over the last years from €43 billion to €80bn. The study suggests new products and services could include different emphases for tourism, different modes of transport such as electronic bicycles, and focused financial services such as life-time annuities or allowing people to draw down an income on the value of their home.

The European Commission is to propose next month changing policies on childcare and encouraging older people to stay in work longer to offset the effect on the European economy of the declining birth-rate.