Europe's Debt Will Kill Welfare State

More than ever in our history, government is caught between the two massive requirements: one of servicing the debt incurred by previous generations and administrations; and the other, of managing the growth of future debt: making provision for rising pension liabilities and the costs of an ageing population. The proportion of the population aged 65 and above is set to rise from around 17 per cent currently to about 26 per cent in 2061 - and with half the inward migration flows experienced in recent years. 

Little wonder that it will seem to a new generation of politicians that history has left them a role no greater than old age home operators and debt commissioners. The scope for the type of government and politics enjoyed for half a century will shrink drastically relative to these two obligations.