Aging population could isolate Netherlands in Europe: report

The Netherlands could become isolated in the European Union (EU) due to its aging population. This is not due to the aging population in the Netherlands but in other European countries. Therefore, the Netherlands Scientific Council for Government Policy (WRR) advised that the country has to protect itself against the negative consequences of an aging European Union.

According to the WRR, the number of people eligible for pensions will double in around 30 years in Europe. The Netherlands is an exception to this within the EU. The number of older adults will also grow here but will be relatively low. The advisory council said the Netherlands has much more considerable savings for pensions than nearly all other EU countries, which finance their pensions from their budgets. This leads to the Netherlands being reasonably well prepared for an aging population.

The government is advised to consider the aging population in the surrounding countries. The financial consequences, such as mounting debts and economic stagnation, can cause rising tensions between the EU member states and put pressure on things like the euro. However, the exact impact is hard to predict, researchers wrote in their report.

The advice to the government is to plead for longer and more hours of work in other EU countries. The Netherlands will also be able to anticipate events more than if it is not just monitoring its own aging population but also other European countries.

"Strengthening trade and investment ties with relatively young countries outside Europe can help to mitigate the impact of Europe's aging population," the WRR wrote.