Past Event

Economic weakness and demographic challenges: what next for Europe?

After a year of weak recovery what is next for Europe? This event looked at both the general macroeconomic situation as well as the challenges posed by changing demographics

Date: February 22, 2016, 12:30 pm Topic: European Macroeconomics & Governance

Summary

See below for video and event materials

This event focused on the recently published European Economic Advisory Group Report of 2016, with special emphasis on the first two chapters (Macroeconomic Conditions and Outlook; Intergenerational Fairness).

In developed economies, the so-called intergenerational contract is facing challenges. Is the current model sustainable? When an individual is born, they receive net transfers from the state in the form of public services (mainly education). These are paid back as taxes during the early stages of the individual’s career. Thereafter the individual becomes a net contributor to the welfare state until retirement. Finally, they return to the initial stage, and receive public services in the form of healthcare and pensions. If properly implemented, this social contract offers a powerful and fair mechanism for intergenerational transfers.

Despite being one of the major hallmarks of developed societies, the intergenerational contract only works if public expenses are offset by working-life contributions. The “Great Recession” has accentuated the bias of public expenditure towards the elderly, leaving the younger to bear the costs of an increasingly expensive welfare state. Empirical evidence suggests that per capita pension and healthcare costs are increasing, even if you control for demographic factors such as the aging population. Although this does not make the social contract unsustainable per se, it comes at a time where neither demographics nor labour market indicators are showing positive trends.

Who gains and who loses from this situation? The current social contract seems to be most favourable to the generation currently receiving pensions in comparison with both previous and future ones. The problems young people face in entering the labour force should be addressed. Moreover, certain countries (for example Italy) are suffering from a brain drain, which generates implicit cross-subsidies between countries. The final remark from the panel was that a European-level social contract could be a potential solution to address this issue while enriching social cohesion in Europe.

Event notes by Jaume Martí Romero, Research Intern

VIDEO RECORDING

Materials and Relevant reading

Presentation | Torben Andersen
Presentation | John Driffill
Presentation | Pia Hüttl
EEAG reports
The growing intergenerational divide in Europe | Pia Hüttl and Guntram Wolff

Schedule

Feb 22, 2016

12:30-13:00

Check-in and lunch

13:00-13:30

Presentation

Torben M. Andersen, Professor, Aarhus University

John Driffill, Chair, EEAG and Professor, Birkbeck College

13:30-14:30

Comments and audience Q&A

Chair: Guntram B. Wolff, Director

Pia Hüttl, Affiliate Fellow

14:30

End

Speakers

John Driffill

Chair, EEAG and Professor, Birkbeck College

Torben M. Andersen

Professor, Aarhus University

Pia Hüttl

Affiliate Fellow

Location & Contact

Bruegel, Rue de la Charité 33, 1210 Brussels

Matilda Sevón

matilda.sevon@bruegel.org +32 2 227 4212

Read about event More on this topic

Past Event

Past Event

How do national energy policies fit into EU decarbonisation plans?

Through considering several different national perspectives, we discuss how to reconcile the EU Climate Strategy targets with national energy and climate policies.

Speakers: Aleksandra Gawlikowska-Fyk, Christian von Hirschhausen, Carole Mathieu and Georg Zachmann Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: May 15, 2019
Read about event More on this topic

Past Event

Past Event

Spitzenkandidaten series: Frans Timmermans

The sixth event in the The Road to Europe - Brussels Briefing Live: Spitzenkandidaten series. The series features the lead candidates for the European Elections of six parties and is jointly organised by Bruegel and the Financial Times in March and April 2019.

Speakers: Mehreen Khan, André Sapir and Frans Timmermans Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: April 11, 2019
Read about event More on this topic

Past Event

Past Event

Spitzenkandidaten series: Manfred Weber

The fifth event in the The Road to Europe - Brussels Briefing Live: Spitzenkandidaten series. The series features the lead candidates for the European Elections of six parties and is jointly organised by Bruegel and the Financial Times in March and April 2019.

Speakers: Anne-Sylvaine Chassany, Manfred Weber and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: April 9, 2019
Read article More on this topic More by this author

Opinion

Can the emerging economic powers govern the globe?

Can a G7 dominated by developing nations provide the impulse to global governance as did the old G7? The answer is no.

By: Uri Dadush Topic: Global Economics & Governance Date: April 4, 2019
Read about event More on this topic

Past Event

Past Event

Spitzenkandidaten series: Jan Zahradil

The fourth event in the The Road to Europe - Brussels Briefing Live: Spitzenkandidaten series. The series features the lead candidates for the European Elections of six parties and is jointly organised by Bruegel and the Financial Times in March and April 2019.

Speakers: Jim Brunsden, Maria Demertzis and Jan Zahradil Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: April 4, 2019
Read about event More on this topic

Past Event

Past Event

Spitzenkandidaten series: Luis Garicano

The third event in the The Road to Europe - Brussels Briefing Live: Spitzenkandidaten series. The series features the lead candidates for the European Elections of six parties and is jointly organised by Bruegel and the Financial Times in March and April 2019.

Speakers: Luis Garicano, Mehreen Khan and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: April 3, 2019
Read about event More on this topic

Past Event

Past Event

Spitzenkandidaten series: Bas Eickhout

The second event in the The Road to Europe - Brussels Briefing Live: Spitzenkandidaten series. The series features the lead candidates for the European Elections of six parties and is jointly organised by Bruegel and the Financial Times in March and April 2019.

Speakers: Bas Eickhout, Guntram B. Wolff and Rochelle Toplensky Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: April 2, 2019
Read about event More on this topic

Past Event

Past Event

Rethinking industrial policy in the digital age: challenges for Europe

All-day conference about how the European policy-making will have to adapt to the digital transformation.

Speakers: Philipp-Bastian Brutscher, Teunis Brosens, Maarten Camps, Lise Fuhr, Padmashree Gehl Sampath, Andreas Geiss, Tony Graziano, Mathew Heim, Thorsten Käseberg, Thomas Kramler, Robert Kroplewski, Timothy Lamb, J. Scott Marcus, Philip Marsden, Jan Mischke, Joakim Reiter, Megan Richards, Valentino Rossi, Marietje Schaake, Reinhilde Veugelers, Guntram B. Wolff and Georg Zachmann Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: March 21, 2019
Read about event More on this topic

Past Event

Past Event

A new climate strategy for the EU

At a pivotal point in time, three major EU sides come together to discuss the future climate strategy.

Speakers: Silke Karcher, Andrei Marcu, Raffaele Mauro Petriccione, Kathleen Van Brempt and Georg Zachmann Topic: Energy & Climate Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: March 19, 2019
Read about event More on this topic

Past Event

Past Event

Law and macroeconomics: legal responses to recessions

This event will feature an academic lecture on the use of law as a macroeconomic tool.

Speakers: Yair Listokin and Maria Demertzis Topic: Global Economics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: March 12, 2019
Read article More on this topic More by this author

Blog Post

Russia's foreign policy does not help its economic modernisation

In the highly interdependent modern world, a country’s economy and its foreign policy are strongly linked. A country’s foreign-policy ambitions should correspond to its economic potential, but Russia’s over-ambitious foreign ventures have exacerbated the negative effects of the numerous economic headwinds it faces.

By: Marek Dabrowski Topic: Global Economics & Governance Date: March 6, 2019
Read about event More on this topic

Past Event

Past Event

Saving the right to asylum

How to improve the European asylum policy?

Speakers: Karen Mets, Nicolas Bauquet, Marc-Olivier Padis, Elina Ribakova, Jean-Paul Tran Thiet and Guntram B. Wolff Topic: European Macroeconomics & Governance Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: March 5, 2019
Load more posts