Rising life expectancy and low fertility are radically transforming Europe’s demographic profile. Ageing populations pose profound political, economic and social challenges for Europe. Many commentators are deeply pessimistic about the consequences of population ageing for the social and economic fabric of Europe. But Alasdair Murray’s essay takes a more optimistic view. He argues that although pro-natal policies or increased immigration cannot be relied on to reverse Europe’s long-term population trends, demography is not destiny. There is much that governments can do, particularly to their labour markets, to counter the economic effects of ageing. At root, Europe faces more of a labour market problem than an intractable demographic crisis.

Alasdair Murray is director of CentreForum, a liberal think-tank, and is a former deputy director of the Centre for European Reform.

Alasdair Murray has also just released a publication for CentreForum Does Britain need a population policy?