The new Member States will fit into the European social model and, given their labour force reserves and high overall levels of educational attainment, are well placed in the long term to become major drivers of economic growth and social improvement. This is one of the main findings of the fifth annual report on the social situation in Europe, which is published today and is the first to cover the enlarged EU of 25 Member States. Experience of past enlargements shows that although the EU is currently faced with more acute problems of poverty, deprivation and inequality, there will be a benefit over time. The report makes clear that, notwithstanding their differences, all 25 Member States share core social values and concerns and are confronted with the same basic problems of demographic ageing, a shrinking working population and the need to reform pension and health-care systems. The accession of 10 new Member States in May 2004 will not change the Union’s ageing process. Although their populations are younger than those of the EU-15, they too have had low fertility rates over the past decade and their demographic patterns will converge with those of the EU-15. Living standards are lower in
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