EUROPEAN governments must press for greater privatisation of the funding of health care and pension systems in order to preserve "macroeconomic stability" in the Euro-zone, according to advice from the European Central Bank (ECB).
The ECB policy, published in its Monthly Bulletin in April, points to the increasing age profile of most populations of EU countries, and the implications this has for the cost of delivering and financing pensions and welfare services.
With birth rates low and still falling in major EU countries such as Germany, Italy and France, the Bank warns that many countries have failed to address the scale of the problem.
The "dependency ratio" - the proportion of the population aged over 65 compared with those aged 15-64 - is expected to rise in the EU from 25 percent in 2000 to 36 percent in 2025 and a massive 50 percent in 2050. "Fertility rates ... are now well below the rate necessary to maintain a constant population."
The Bank warns that:
"Current policy intentions in many countries do not appear sufficiently ambitious to avert major imbalances in future. Reforms should place both public pension systems and health and long-term care arrangements on a sustainable financial footing by limiting the public sector's exposure, enhancing private funding, incentives for efficient service provision."
Since the ECB is a capitalist institution seeking to resolve contradictions of a capitalist system in the interests of the capitalists themselves, its proposed "solutions" are a
onto working people and their families. public spending. The costs need to be ual. and setting ments as already implemented in a number
of countries"). concern to the ECB reactionary attempt to dump the problem
The Bank is not opposed to spending on backing the Iraq war. health, pensions and social care - just to switched from the collective to the individHence proposals that publicly-funded health care should be restricted to a "safety ing 250,000 voters. net" package of services which are "privately non-insurable and non-affordable", while leaving individuals to provide "non-essential health expenditure" and imposing more extensive charges for care ("patient co-payThe paradox that those in greatest need of health care have least ability to pay Bilbao. charges or insurance premiums is of no
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