"In reality, a legal retirement age of 80 is what we should aim at," Erich Streissler, an Austrian economist, wrote in a newspaper article.

The European Commission's paper, to be published on Thursday (17 march), points to the serious consequences of an ageing population on Europe's economies.

In terms of the workforce, the EU will need to exceed its target employment rate of 70 percent because of the rate that people will drop out the job market. The working age population is expected to fall by almost 21 million in the next three decades.

The paper points out that whilst immigration can help the situation, it is "no substitute for economic reforms", including modernising the pension systems, raising the retirement age and getting more people into jobs. [link]

... the EU will need to exceed its target employment rate of 70 percent

How far behind the US is Europe? They're still in the disco era:

The US economy is 20 years ahead of that of the EU and it will take decades for Europe to catch up, according to an explosive new study published on Friday.

The survey, unveiled by pan-EU small business organisation Eurochambres, is intended as a sharp wake-up call for EU leaders as they gather on 22 March for a summit on how to boost growth and jobs in the EU economy.

The EU's current performance in terms of employment was achieved in the US in 1978 and it will take until 2023 for Europe to catch up, the report shows.

Driven largely by prosperity and freedom, millions of women throughout the developed world are having fewer children than ever before. They stay in school longer, put more emphasis on work and marry later. As a result, birth rates in many countries are now in a rapid, sustained decline.

Never before -- except in times of plague, war and deep economic depression -- have birth rates fallen so low, for so long.

What was once regarded universally as a cherished goal -- incredibly low birth rates -- have in the industrial world at least suddenly become a cause for alarm. With life expectancy rising at the same time that fertility drops, most developed countries may soon find themselves with lopsided societies that will be nearly impossible to sustain: a large number of elderly and not enough young people working to support them. The change will affect every program -- from health care and education to pension plans and military spending -- that requires public funds.

There is no longer a single country in Europe where people are having enough children to replace themselves when they die. Italy recently became the first nation in history where there are more people over the age of 60 than there are under the age of 20. This year [1998 - DS] Germany, Greece and Spain will probably all cross the same eerie divide. [link]

More babies wanted
Europeans have fewer children than they would actually like, according to the report, which also argues that public authorities should provide better conditions for Europe's citizens in terms of family benefits, child care or parental leave provisions.

Of the five largest member states, only Britain and France are set to grow in population in the coming years, while in some countries, the population will start falling by 2015, with a drop of more than 10-15 percent by 2050.

Across the EU, only Ireland, France and Denmark approach the fertility rate necessary to renew the population.

I believe that the 70% employment figure in today's post does NOT mean 30% unemployment. Unemployment, as you know, is based on the number of people seeking work or working. I think the 70% employment figure means that 70% of the working-age population is working--not staying at home and NOT seeking employment. In other words, there need to be more housewives out there working! Of course, that means they would be even less likely to have babies....