Turkey makes a mockery of Europe’s claim to uphold democratic values. EPC Commentary, 16 March 2016

The 7 March EU-Turkey migration crisis summit took place three days after the Turkish authorities seized Feza media group, which includes Turkey’s largest circulation daily Zaman and its English language sister paper Today’s Zaman. The seizure was the latest development in the worst crackdown on fundamental rights and freedoms Turkey has witnessed in decades. Yet because Turkey is vital in dealing with the migration/refugee crisis, the EU’s response was meek to say the least. For the first time since the Cold War – when Turkey was key in shoring up Europe’s security – Ankara has found itself in a particular position of strength. Turkey has skillfully exploited the EU’s and particularly German Chancellor Angela Merkel’s urgent need to find a way out of the crisis.

Turkey makes a mockery of Europe's claim to uphold democratic values. EPC Commentary, 16 March 2016

The 7 March EU-Turkey migration crisis summit took place three days after the Turkish authorities seized Feza media group, which includes Turkey’s largest circulation daily Zaman and its English language sister paper Today’s Zaman. The seizure was the latest development in the worst crackdown on fundamental rights and freedoms Turkey has witnessed in decades. Yet because Turkey is vital in dealing with the migration/refugee crisis, the EU’s response was meek to say the least. For the first time since the Cold War – when Turkey was key in shoring up Europe’s security – Ankara has found itself in a particular position of strength. Turkey has skillfully exploited the EU’s and particularly German Chancellor Angela Merkel’s urgent need to find a way out of the crisis.

Measuring Dependency Ratios using National Transfer Accounts. CEPS Working Document No. 420/April 2016

It is now widely recognised that the socio-economic changes that ageing societies will bring about are poorly captured by the traditional demographic dependency ratios (DDRs), such as the old-age dependency ratio that relates the number of people aged 65+ to the working-age population. Future older generations will have increasingly better health and are likely to work longer. By combining population projections and National Transfer Accounts (NTA) data for seven European countries, we project the quantitative impact of ageing on public finances until 2040 and compare it to projected DDRs. We then simulate the public finance impact of changes in three key indicators related to the policy responses to population ageing: net immigration, healthy ageing and longer working lives. We do this by linking age-specific public health transfers and labour market participation rates to changes in mortality. Four main findings emerge: first, the simple old-age dependency ratio overestimates the future public finance challenges faced by the countries studied – significantly so for some countries, e.g. Austria, Finland and Hungary. Second, healthy ageing has a modest effect (on public finances) except in the case of Sweden, where it is substantial. Third, the long-run effect of immigration is well captured by the simple DDR measure if immigrants are similar to the native population. Finally, increasing the length of working lives is central to addressing the public finance challenge of ageing. Extending the length of working lives by three to four years over the next 25 years – equivalent to the increase in life expectancy – severely limits the impact of ageing on public transfers.