Older generations are part of our future

Older generations are part of our future
– the EU's response
to demographic change
World Ageing & Generations Congress
St. Gallen, October 1st 2005
Speech by
Mr Vladimir Špidla
Member of the European Commission
Commissioner for Employment,
Social Affairs and Equal Opportunities
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Ladies and gentlemen,
Demographic change is one of the three major forces
reshaping Europe, alongside a growing globalisation of
the economy and technological advance. According to
demographic predictions, by 2030 the EU's working age
population will have fallen by almost 21 million. In the next
twenty years the number of young Europeans will drop by
20%. And by 2050, the number of people over 65 will
make up 20% of our population. Elderly people are
becoming an increasingly important group in society, and
not just in statistical terms - as voters, as consumers, as
opinion-makers.
Although I will deal in my speech with a number of
economic aspects of this development, I would like to
signal first and foremost that for the European
Commission and for me personally this is far more than
just an economic issue. It is above all a human issue, and
I will be the first to resist reducing it just to its economic
dimension. Increased life expectancies - which are a
welcome sign of progress - also represent a challenge
which is far more than just an economic one. That is, how
do we add LIFE to YEARS, and not just YEARS to LIFE?
In other words, how do we ensure that today´s and
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tomorrow´s elderly people have the quality of life which
they deserve?
Ageing is not only a demographic process but also a
socio-economic trend with serious social and economic
implications for policy makers and institutions at all levels.
The public sphere has an important role to play here. We
may wish that all future elderly maintain as much
independence as long as possible; and indeed the
fostering of autonomy and independence is to be seen as
a major policy goal in itself. However, it is clear that
among the growing numbers of Europe´s elderly there are
- and will be - many who will require ample support from
public policies.
Although some of us may wish for a return to purely
individual or family responsibility, it is not a realistic option.
The very fact that today´s families are smaller means that
there are usually fewer relatives to rely upon. Furthermore,
in a world of equal opportunities there is no way to return
to traditional society in which support and care for the
dependent elderly used to be provided chiefly by female
relatives who were themselves out of the job market.
Therefore, if the dignity and well-being of our elder citizens
is to assured in our society, then public policy must
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provide ample support for the individuals and families
concerned.
Therefore, European social services and health services
of have to be prepared to provide care in a way which is
worthy of the 21st century. Paternalistic approaches to
elderly people cannot be acceptable any more. Neither is
it acceptable to focus only on the material aspects of care.
The expectations of people who are growing old now are
going to be different from preceding generations, and
rightly so. They will insist on individualized services, not
treatment en masse; they will be far more acquainted with
a "human rights culture".
Therefore, I consider it one of the principal roles of the
European Commission to stimulate the exchange of good
practices through the Open Method of Co-ordination,
which from 2006 onwards will also include long-term care.
Although substantial progress has been made over the
last few decades, far too many elder Europeans still live in
large institutions, - and while some of these institutions
have thoroughly modernized their approach to clients, in
many others the quality of care remains inadequate.
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As our sensitivity to the needs for autonomy, dignity and
privacy grows, European societies are becoming
increasingly aware of the problem of such inadequacies of
care, which sometimes may be classified as various forms
of elder abuse. This problem is not specific to institutional
settings, as it can appear also in community care and in
the form of domestic violence, but the culture of many
closed institutions appears to be conducive to it. The
European Commission is therefore dedicated to the
support of community-based alternatives to institutional
care, as well as to exchange of good practices among the
institutions in various Member States.
The issue of increased needs for long-term care for
dependent elderly people is, of course, only one of the
preoccupations which we are facing. Although every one
of us is likely to need care at some point, it is to be
expected and hoped that a majority of elderly people will
be basically independent and in good health for most of
the time. Indeed, there are indications that most elderly
will lead an increasingly active life.
However, both the issue of care for frail and vulnerable
elderly and the facilitation of an active lifestyle of the
independent ones have an important socioeconomic
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dimension. I emphasize the word socioeconomic, because
it is not just the question of resources needed for pensions
on one hand and quality care on the other; it affects also
urbanism, policy decisions on regional level, conditions for
participation of civil society in decision-making and so
forth. Yet it is undeniable that there is also an economic
aspect which needs to be addressed - though here again I
underline that the financial aspect must be perceived as
an instrument, not as a goal in itself.
It is in this context that we must ask ourselves whether
Europe will be able to maintain strong growth, generate
tax revenues and sustain social protection systems. We
must address the issue whether Europe’s labour markets
and social protection systems are adapting to
demographic change well enough to guarantee the quality
of life of today´s and tomorrow´s elderly. I believe that
there still is a gap between demographic trends and public
policies, and that this gap needs to be closed.
To defend the humanistic values of the European social
model and to deliver the improved quality of life that
longetivity should bring, we must modernise the practices
that define solidarity between generations.
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Increases in life expectancy mean that we cannot
encourage people to have shorter working lives just at a
time when they are fitter and able to work longer. To
maintain high quality of life means we have to increase
available resources. Older workers are not part of
Europe’s problem - they are part of the solution. Active
ageing policies and the prevention of health and safety
risks at work are key to ensuring adequate and financially
sustainable pension and healthcare systems.
Increasingly, Member States are developing policies on
ageing. There is evidence that comprehensive ageing
strategies can achieve results, and some countries have
covered huge ground.
For example, between 1997 and 2004 Finland managed
to raise the employment rate of older workers by 15
percentage points. The Netherlands has made similar
progress. So lessons can be learned from these countries.
It is clear that no country in Europe will escape
demographic decline. And when countries run into
common difficulties, the EU is a rich source of experience,
guidance and good practice.
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So what are we doing at EU level to meet the challenge of
ageing?
Exploiting the full potential of every worker, including older
workers, is a priority for the EU’s renewed Lisbon strategy
for growth, employment and greater social cohesion. By
putting active ageing at the core of the lifecycle approach,
the revised European Employment Strategy, through its
integrated guidelines, is clear about what needs to be
done to attract older workers into the labour force.
Meeting the challenge of an ageing society requires action
across a wide range of policies. Some of the main areas
include reforming retirement schemes and pensions,
increasing access to lifelong learning, carrying out tax and
benefits reforms, improving quality in work and, above all,
changing attitudes and stereotypes.
The European Social Fund, the Employment strategy’s
financial lever, also plays a key role in translating active
ageing policies into a reality by improving the employability
and adaptability of older workers. Its focus on skills and
diversity of the work force means age becomes less of an
issue.
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But reversing trends is also about creating solidarity
between generations. Our older workers today will be the
elderly generation tomorrow. What will they require? How
will we manage with less young people to replace older
generations?
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To ensure prosperity for all, Europe needs to adapt its
social and economic model to the realities of today. It is in
this spirit that we published a Green Paper earlier this
year. The aim was to stimulate debate and encourage a
more global approach to reform.
It must be emphasized that the European Commission
cannot directly influence family policy, which is a domain
of the individual Member States. However, there is an
aspect for which the Commission is responsible, and that
is the promotion of gender equality. And it is slowly
becoming evident that, as research suggests, that there is
a gap between the number of children Europeans desire
and the number that they actually have - because women
are still facing the difficult choice between having a child
and continuing a career.
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Research also indicates that this effect is less pronounced
in those countries where equal opportunities at work are
matched by a chance to reconcile work and home life.
Public policy which focuses on equal opportunities for men
and women can therefore have a positive effect, as
demonstrated by some of the Nordic countries, which
have gone ahead of many others in allowing men and
women to share family responsibilities, encouraging
parental leave and flexible working hours.
Low birth rates also raise the difficult issue of immigration.
Immigration can contribute to raising Europe’s population.
In some countries the influx of migrants is already making
a difference. Closing Europe to future immigration would
be illogical and wrong. However, immigration also requires
far more effective integration policies than most European
states have been able to carry out until now. We cannot
create two-tier societies in which immigrants would be
socially excluded or serving merely as providers of labour,
without fully participating in all ranges of the economic,
social and cultural life of a given society.
Furthermore, creating favourable conditions for the quality
of life of tomorrow´s elderly will require today´s young
people to become more productive, if they are to sustain
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our future social protection systems. Qualification is vitally
linked to high productivity: we need to invest in the
education of young people now. We need to fight youth
unemployment. We need to ensure young people are
getting the best education from the earliest possible stage
in life.
We know that older workers are central to achieving
stronger growth and greater social cohesion, so all of this
underlines how our approach to ageing must embrace
every stage of the lifecycle. In addition, facilitating the
transfer of knowledge from one generation to the next is
vital for achieving higher quality of life and promoting an
inclusive society.
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As a follow up to the Green Paper debate, the
Commission will publish a White Paper at the end of this
year. This will set out concrete proposals to move forward.
We still have along way to go in terms of adapting all of
our policies to respond effectively to demographic change
in the EU - and with twenty-five countries there is no onesize-
fits all. But we can learn from each other. It doesn’t
make sense to respond to a challenge this size only at
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national level. Through strong partnerships at European,
national, regional and local level, we can better manage
the enormous changes going on around us.
I believe that we are moving towards a consensus on how
we have to adapt our policies to today’s realities. This
conference provides us with yet another opportunity to
listen and to learn. It is also a chance for the EU to share
its experience. I look forward to the discussions and to an
interesting debate.