Demographic Shifts and Fiscal Challenges

The European population is experiencing rapid aging, with projections indicating a significant decline in the working-age population, expected to drop from 264 million to 207 million over the next three decades. This demographic shift presents major financial challenges for EU countries as the share of elderly individuals rises while the number of children decreases. Increased costs associated with pensions and healthcare will necessitate substantial adjustments to national budgets, potentially compromising funding for other essential public services such as education and law enforcement. As a result, fulfilling sustainability in public finances will require ongoing fiscal reforms beyond initial adjustments to accommodate the mounting aging-related expenses.