Ageing population a ticking timebomb for EU

Slowly but unsurely Europe is facing up to population trends that will sap long-run economic growth and force nations to choose between cutting pensions and welfare benefits or paying higher taxes to maintain them.

Some countries are getting an early taste of difficulties that await Europe as baby boomers retire and, because of flagging fertility rates, the average age of those left in the labour force rises.

In France, trade unions are planning protests against modest plans to rein in the country’s pension funding gap of €14bn and rising.