European Union countries should quickly reform their pension and health care systems to offset the long-term impact of an ageing population on growth and public finances, Economic Affairs Commissioner Joaquin Almunia said.
The call comes as the bloc's finance ministers meet today and tomorrow to discuss a report by the commission and the EU's Economic Policy Committee on the negative impact of demographic trends on the economy.
"Member states should exploit a fast-closing window of opportunity to intensify reform efforts. Unless this is done, many EU countries, from the old to the new members, will simply not be able to face the cost," Mr Almunia said in a statement.
"Delays will simply increase the cost and pain of adjustment, which is not fair for our children and grandchildren," he said.
To offset the long-term effect of a shrinking number of working-age Europeans supporting growing numbers of pensioners, European Union finance ministers will pledge to cut debt and reform pension and health care schemes.
The commission report says that because EU citizens have fewer children and live longer, the EU's working-age population is expected to fall by 16 per cent between 2004 and 2050 while the number of EU citizens over age 65 will jump 77 per cent.
This means Europe will have only two people of working age per elderly person instead of four now, while the costs of pensions, health care and elderly care will rise.
The report said the higher expected spending called into question the sustainability of pension systems in Hungary, Spain, Slovenia, Luxembourg, Portugal and Cyprus.
In the euro zone, total age-related expenditure will rise by 1.9 per cent of gross domestic product by 2030 and by 3.7 per cent of GDP by 2050, the report said. Annual potential economic growth in the 15 "old" EU members will slow to 1.3 per cent in 2031-2050 from 2.2 per cent now.