How the boomers screwed Europe

illuminem summarises for you the essential news of the day, reviewed by our editorial team. Read the full piece on The Economist or enjoy below:

🗞️ Driving the news: Europe’s aging population is placing unprecedented financial pressure on younger generations
• Skyrocketing pensions and healthcare costs are consuming roughly a quarter of the EU’s GDP
• This leaves millennials and Gen Z shouldering a disproportionate share of taxes while struggling with housing affordability and economic mobility.

🔭 The context: Horizontal inequalities, between richer and poorer countries, have shifted to vertical, intergenerational imbalances
• Young adults are increasingly trapped in parental homes or burdened with high taxes, funding retirees who benefitted from decades of economic growth

🌍 Why it matters for the planet: Economic strain may reduce investment in sustainable infrastructure and climate action, as governments prioritize pensions and social safety nets over long-term environmental goals
• Generational wealth gaps also influence consumption patterns and support for green policies

⏭️ What’s next: Without structural reforms, Europe’s youth may face prolonged economic stagnation and limited upward mobility
• Policymakers would need to balance pension sustainability with climate, housing, and social investments to maintain intergenerational equity

💬 One quote: “To be a young European is to feel oneself an unwitting participant in an intergenerational confidence trick.”

📈 One stat: Costs related to aging currently consume about 25% of the European Union’s GDP.

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