Parts of Europe at Risk of Downward ‘Spiral’ if Older Voters Stymie Reforms, EBRD Warns

By Paul Hannon of The WSJ. Excerpts:

"the EBRD [European Bank for Reconstruction and Development] concluded that later retirement, higher immigration and the adoption of new technologies to boost productivity could help offset much of the hit to growth from a shrinking working-age population." 

"political support for those measures may be weak in countries where older voters are dominant"

"Fertility rates in most post-Communist countries are below the 2.1 children per woman that would ensure a stable population. In parts of central Europe, the fertility rate is between 1.3 and 1.6 children"

"Fewer workers also mean that the annual growth of gross domestic product per head will be lower on average by 0.4 percentage points through 2050"

"governments should embrace overhauls that increase immigration, extend working lives, restructure pensions and harness technological innovation to boost productivity"