Slovakia’s ageing population to drastically increase public spending

Slovakia will increase public spending to deal with the challenges of its aging population to a level not seen in any other EU country by 2070, the Slovak Institute of Financial Policy has claimed.

“Expenditures on pensions, healthcare, long-term care and education will increase from 18.3% of GDP in 2019 to 29.1% of GDP in 2070,” the institute’s analysts have said.

The European Commission report claims that Slovakia will be one of the fastest ageing countries in the bloc. While in 2019, there were almost four people of working age for every one person over the age of 64, projections show that in 2070 there will be only 1.6.

In order to manage this development through public finances, a set of reform measures will be needed, experts have warned.

In their view, the most important is the pension reform, which should stabilise the pension system and increase its long-term financial sustainability. Measures should also be taken to encourage greater participation of selected sections of the population in the labour market and to reduce brain drain abroad.

On the contrary, active recruitment from abroad needs to be strengthened, especially for jobs that are insufficient in Slovakia, analysts explained. Despite that, it is still hard for foreigners to access the labour market in Slovakia, especially for those from third world countries and it remains a controversial topic.

The government is currently addressing the issue by opening discussions on pro-family policy measures, such as support for pregnant women and financial contributions for families per child. (Lucia Yar | EURACTIV.sk)