Europe's pension reform plans face serious obstacles

EU pensions analysis: Political resistance to attempts to raise the pension age to increase the sustainability of public pension systems has been considerable, writes Kyran Fitzgerald

People walking along the Zeil shopping street in Frankfurt, Germany. The pension contribution rate of workers is set to rise from 18.6% to 22.3% of gross salary by 2045.

Europe’s population is aging fast. There are serious concerns about the future viability of State pensions at a time when the Continent’s business sector lacks dynamism and external challenges grow more daunting by the day.

Its lead economy, that of Germany — the European Union’s traditional engine and leader — is facing serious headwinds. Ironically, it is the future of its huge auto industry which now appears to be in doubt as a result of the rise of China’s Electric Vehicle sector.