Old Europe - Demographic change and intergenerational justice in Europe

Abstract: Over the coming decades, Europe is one of the first parts of the world to face a gradual decline of its population which in turn will lead to a sustained process of aging in society. Though some European countries are more affected than others, this phenomenon is shared by most of the post-industrial societies of Western Europe. Among other economic and social effects, these radical changes will put the social security systems to a decisive test and have already kindled a controversial debate on how to address these changes politically. By examining the impact of the demographic shift on both society and the economy, this thesis aims at contributing to the debate. The analysis places particular focus on the pay-as-you-go pension system which is the most common type of state-run systems. By transferring an ever increasing fiscal burden to future generations, this system is facing collapse. The ?intergenerational contract? has become a mere fiction at a time when beneficiaries by far outnumber those who feed into the system. In search of guidelines for intergenerational justice and equality for sustainable social security in the future, the theory of justice by John Rawls is being consulted. Rawls was among the first to present a systematic discussion of obligations in between generations, His points are remarkably up-to-date and offer crucial insights that call for fundamental policy changes.