In 2003, the ECOFIN Council gave the Economic Policy Committee (EPC) a
mandate to produce a new set of long-run budgetary projections for all
twenty-five Member States covering pensions, health care, long-term care,
education, unemployment transfers and, if possible, contributions to
pensions/social security systems. This follows the projection exercises of 2001
and 2003. The age-related expenditure projections feed into a variety of policy
debates at EU level. In particular, they are used in the annual assessment of
the sustainability of public finances carried out as part of the Stability and
Growth Pact; in the context of the Open-Method of Co-ordination on pensions;
and the analysis on the impact of ageing populations on the labour market and
potential growth which will be relevant for the Lisbon strategy and Broad
Economic Policy Guidelines.
This report provides a description of underlying assumptions, projection methodologies and background analysis of the age-related expenditure projections. Final results will be calculated on the basis the described methodology and will be presented to the Ecofin Council in February 2006.
|ISBN 92-894-9042-X (online)|