The Economist highlights a BCG Henderson Institute study which examines how rethinking the financing of Europe’s pension systems could unlock trillions of euros for the EU economy. In many EU countries, public “pay-as-you-go” schemes run up sizable deficits which governments must cover, amounting to about 2% of GDP in Germany and 6% in Italy. If EU nations reformed their programs by investing more pension savings in capital markets, they create a powerful source of long-term growth.
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The Economist