• demographics; macro-economy; statistical data; eco
• EU-15

The increasing percentage of individuals aged 65 years and older and decreasing total fertility rate is contributing to European Union’s demographic shift and increase in government expenditures. These changing demographics are calling for changes in macro-economic policies, particularly monetary policies. The increase in older population is placing a strain on governmental budgets calling for an increased expenditure on health care delivery, pensions, and long-term care. Just these factors alone are becoming a challenge for policy makers in the European Union, specifically, the EU-15 countries.
Thus, measures need to be taken to curve the current macroeconomic environment based on the demographic shift that is taking place and it projected for the future of 2060. It is essential that economic and financial policy makers and leaders develop economic plans within the EU-countries that focus on increasing economic growth, maintaining inflation, sustaining savings and investments. This can be accomplished using the numerous policy recommendations that are described in the current research.
In order to examine the factors of demographics influencing macroeconomics and analyse their impact on EU-15 countries individually and on a whole, empirical data was obtained from government agency statistical websites for EU-15 and individual countries comprising the group. The demographic data obtained was correlated with the economic data in order to establish a relationship. The statistical data was comprised of birth rate, total fertility rate, ageing population, youth population, unemployment, government expenditures, economic growth, capital, and inflation.
After the completion of data analysis and review of academic literature, results and discussions were carried out in the present paper. This also included potential recommendations for a more effective improvement on the macro-economy of EU-15 countries.