Posted on 10/11/2005 12:16:48 AM PDT by lowbuck
Europe is running out of time to push through radical reforms and boost its growth potential before an ageing population undermines its economic performance, the President of the European Central Bank warned eurozone governments yesterday.
In his latest broadside at politicians’ failure to deliver more far-reaching economic reform, Jean-Claude Trichet said that efforts to boost the eurozone’s growth potential had faltered because of a lack of drive and determination.
With the growth of Europe’s working-age population set to slow further and then turn negative within a few decades, the pace of economic expansion that could be maintained was set to suffer, M Trichet said.
The ECB President said average growth might fall below 2 per cent a year between now and 2010 and drop to less than 1.5 per cent by the end of the next decade.
“Taking into account these unfavourable demographic developments, only with ambitious and comprehensive reforms (is there) some scope for raising medium to longer-term output growth in the euro area, or even simply sustaining the (existing) long-term growth potential,” he said.
M Trichet called for the European Commission to publish regular league tables showing what EU member states had achieved economic reforms.
“Benchmarking member states’ performance can provide incentives for reform and thus shore up the commitment to reform,” he argued.
The Commission already publishes similar tables comparing countries’ performance in implementing EU competition policy.
More determined efforts by European governments to make the case for reform to people and businesses were also required, M Trichet added. He said governments had been prone to “a lack of focus, a lack of adequate communication, and a lack of incentives”.
“A better understanding of the benefits from structural reforms could raise business and consumer confidence,” he said.
Companies and governments need to do more to encourage older people to carry on working later in life if ageing populations are not to inflict a growing toll on Western economies, the Organisation for Economic Co-operation and Development said.
A study by the 30-member club of the richest nations sounded warnings over the threat posed to living standards by a demographic time-bomb in much of the West. It strongly criticised employers for practices that discouraged older workers.
Growth in GDP per head in the OECD could shrink to 1.7 per cent a year over the coming three decades unless working patterns were dramatically changed, the study said.
Immigration is "sort of accepted" across the continent. However, those coming to Europe tend to be from poor countries and have little education. But, they do tend to reproduce at an acceptable rate.
So I guess the headline should read "Europe Faces TWO time bombs!"
That's what the culture of death will do for you. Your culture dies off.
Immigration is "sort of accepted" across the continent. However, those coming to Europe tend to be from poor countries and have little education. But, they do tend to reproduce at an acceptable rate.
So I guess the headline should read "Europe Faces TWO time bombs!"
I don't know about Germany, but here in Spain there is not a lot of opportunity to work except if you're to do unskilled/semiskilled work for low pay. There's an abundance of educated workers but few jobs. So make that THREE time bombs.
Old Europe is on its last legs.
Eurabia will emerge.
Europe is facing a "stupid" time-bomb... oh wait, that already went off.
It looks like a northern hemisphere thing
To hell with Europe. It was a mistake to save them in 1917
I thought the whole point of the high taxes was so they could have all the free child care they wanted. Certainly the supercilious sneering Euro-trash twits I have met cite that as one reason everyone should love socialism.
-ccm
Old Europe (specifically England and France) possesses many nuclear weapons. Most of the other countries of Western Europe could produce them in a few months, given the political will. I don't want that capability falling into the hands of the fiendish Ishmaelite head-choppers.
Also, the cultural treasures of Christendom are worth fighting for. If the Mahometan filth take over, the Louvre will suffer the fate of the Buddhas of Bamiyan, and cathedrals will be used for latrines and stables.
We cannot permit Eurabia to exist. If we have to fight a bloody war to expel the diabolical Amalekites, so be it. They belong in the deserts of Arabia, not among civilized human beings.
-ccm
The $ 44 Trillion Abyss | FORTUNE ...
Gulp The first massive wave of baby-boomer retirees will hit five years from now. That will leave fewer workers to pay for ballooning Social Security and Medicare bills. How the expected budget shortfall of $44.2 trillion* breaks down
Source.................. Amount Social Security....... $7 trillion Medicare........... $36.6 trillion Other................. $0.6 trillion *Based on current government revenue and spending. Sources: Census bureau; Smetters and Gokhale .......
MORE: http://www.moneyfiles.org/ssscam.html (SCROLL DOWN)
The aging population in Europe, who invented modern civilization and technology, is being replaced with a massive demographic shift of poor and poorly educated masses from Third World countries who have not advanced in over 2000 years.
In years to come Europe will be no different than any other Third World country, except it will be cold.
One of the problems is that the young PREFER to see themselves as EUropean not German, French, Italian, etc.
They DO wish there was an U.S.EU.
The EU government has worked overtime to propaganda them. Ecconomic reforms are too late even if done now.
Once upon a time we were all farmers. We had no real financial tools to save $ for our retirement years. So we had kids to work the farm when we got old. Them old duffers then provided an in home childcare service to the working generation. In short we raised our grandkids.
Then this thing called an industrial revolution got started.
After a much talked about but slow start it finally got going after WWII. It resulted in financial tools that allowed people to save $ for the retirement years. Kids to work the farm are no longer required. They also have a relatively high survival rate so you only need a few to have a few survive, rather then a dozen or more. The Christian ethic of “go forth and multiply” became a financial burden rather then an asset.
It ain’t about abortion any more then it’s about the cost of grape fruit. On a generational scale we are all in the process of moving off the farm. Populations will crash. Economic chaos will happen. The non industrial world will try and move in and live off the excess like a parasite. Some of us may even live long enough to see where it all ends up.
Hang on tight. The next few generations are in for one hell of a ride.
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