Population decline is a harsh reality

"More immigration is necessary. Existing projections already assume substantial immigration, which, however, is insufficient to reverse aggregate aging." This bold statement was made recently by Rolf Strauch, chief economist of the European Stability Mechanism, in his latest report on demographics and financial stability.

The demographic crisis also featured prominently in a much-discussed report on the future of European competitiveness that followed shortly after. Here, former European Central Bank president Mario Draghi argued that "positive net inward migration does not compensate for the EU's population decline. Long-term population projections suggest a further continued decline of the EU's population. This decline stands in contrast to the US, whose population is expected to continue to grow during the next decades, albeit at a slowing pace."

How is it that the...