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Europe’s Longevity Slowdown: What’s Behind It And How To Turn The Tide

For decades, Europe has led the world in life expectancy, with people born today expected to live well into their 80s. But after years of steady gains, progress stalled in the 2010s—long before the COVID-19 pandemic triggered a sharp decline. A new study sheds light on why longevity gains slowed and what policymakers can do to reverse the trend.

The Numbers Tell The Story

A study published in The Lancet Public Health examined life expectancy trends across 20 European nations, including Germany, France, the UK, and Nordic countries. Between 1990 and 2011, life expectancy rose by an average of 0.23 years per year, driven by fewer deaths from heart disease and cancer. This meant that each new generation could expect to live nearly three months longer than the previous one.

However, from 2011 to 2019, that rate dropped to 0.15 years per year, signaling a clear slowdown. England experienced the sharpest stagnation, followed by Germany and Spain. Meanwhile, Nordic countries saw only minimal deceleration, maintaining their upward trajectory.

What’s Behind The Slowdown?

The primary culprit: a rise in deaths from cardiovascular diseases linked to obesity, high cholesterol, hypertension, poor diet, and lack of physical activity. While past public health efforts successfully reduced mortality from infectious diseases and cancer, lifestyle-related health risks have become more prevalent.

Demographic shifts also play a role. Researchers suggest that increased migration in countries like the UK, France, and Germany has altered the population’s age structure, impacting overall life expectancy figures.

The Pandemic Effect

COVID-19 accelerated the decline. From 2019 to 2021, life expectancy fell across most of Europe, with Greece and England seeing the biggest drops—0.61 and 0.6 years, respectively. However, some countries fared better. Life expectancy continued to rise in Norway, Iceland, Sweden, Denmark, and Ireland, while Belgium held steady.

Why did some nations withstand the crisis better? The study suggests that strong public health policies played a crucial role. Countries with proactive healthcare systems and healthier populations before the pandemic were more resilient when the crisis hit.

Reversing The Trend: What Needs To Change?

The solution lies in aggressive public health strategies. The study highlights key policy areas that could help reinvigorate longevity gains:

  • Targeting preventable health risks – Governments must double down on initiatives promoting healthier diets, regular exercise, and better access to preventive healthcare.
  • Investing in social infrastructure – Research shows that increased public spending on education and disability services correlates with longer life expectancy.
  • Economic stability matters – A 2021 study in England found that cuts to local government funding widened the gap in life expectancy between wealthy and lower-income areas.

Signs Of A Rebound?

There’s hope. Recent data from the European Union suggests life expectancy has begun to recover, with the average reaching 81.5 years in 2023. However, some nations—including Austria, Finland, Estonia, the Netherlands, Greece, and Germany—are still seeing declines.

“Life expectancy for older people in many countries is still improving, showing that we have not yet reached a natural longevity ceiling,” says lead researcher Nick Steel. “We still can reduce risks and prevent early mortality.”

The question now is whether policymakers will act decisively—or risk allowing Europe’s hard-won longevity gains to erode further.

Bank of Cyprus Upgrade Signals Fresh Optimism For Greek And Cypriot Banks

Regional Banks Enter A More Favorable Cycle

Bank of Cyprus and Eurobank are well positioned to benefit from a renewed re-rating of Greek and Cypriot bank stocks, according to Cyprus-based investment firm Roemer Capital, which upgraded Bank of Cyprus to a buy rating and reaffirmed its positive view on Eurobank.

The firm cited easing geopolitical tensions, resilient economic growth in Greece and Cyprus, lower funding costs and Greece’s expected transition to developed-market status as the main factors supporting the sector.

Roemer Capital also lowered its cost of equity assumptions, updated its forecasts following first-quarter 2026 results and extended its valuation horizon to the end of 2027, raising target prices across its banking coverage.

Bank Of Cyprus Gets The Largest Upgrade

Bank of Cyprus received the biggest revision, with Roemer Capital upgrading the stock from hold to buy and setting a target price of €11.10, implying potential total upside of 27%.

The firm highlighted the bank’s strong capital generation, profitability and projected 100% dividend payout, describing it as the strongest capital-return story among the banks under coverage. Roemer Capital maintained its buy rating on Eurobank, assigning a target price of €4.90 and forecasting potential upside of 28%. The report said the bank is well placed to benefit from loan growth, improving operating performance and merger-and-acquisition synergies.

National Bank of Greece and Piraeus Bank also retained buy ratings, with expected returns ranging from 25% to 36%. Optima Bank was upgraded to buy, while Alpha Bank remained at hold on valuation grounds.

Why Growth Still Sets The Region Apart

According to Roemer Capital, Greek and Cypriot banks continue to benefit from stronger economic fundamentals than many western European peers. The report pointed to faster economic growth, healthier balance sheets, low levels of non-performing exposures, capital ratios approaching 20% and strong customer deposit bases.

Analysts expect performing loans across the sector to grow at a compound annual rate of 6% to 8% through 2028, supported by private investment, digitalisation, green manufacturing, supply-chain expansion and a gradual recovery in household lending.

The report also said the conclusion of lending under the EU Recovery and Resilience Facility is unlikely to materially affect credit growth, as banks have already shifted back towards traditional commercial lending. Roemer Capital expects Euribor to remain between 2.2% and 2.5%, a level it believes should support both lending activity and net interest margins.

Geopolitics, Valuation And Market Structure Support The Case

The report said improving geopolitical conditions have strengthened the investment outlook, noting that Brent crude prices have largely returned to pre-war levels while Greek government bond yields have stabilised at around 3.5%. Although geopolitical risks remain, Roemer Capital believes the likelihood of a major inflationary shock or significant pressure on bank profitability has eased.

Another important catalyst identified by the firm is Greece’s expected promotion to developed-market status by FTSE Russell, STOXX and MSCI over the coming months.

According to the report, the reclassification should improve liquidity and attract a broader base of international investors. Roemer Capital also said Euronext’s acquisition of the Athens Exchange is expected to strengthen market infrastructure and increase international visibility, particularly for Bank of Cyprus and Optima Bank.

The firm noted that Bank of Cyprus has already benefited from its Athens listing, with average daily trading value increasing from less than €400,000 before its September 2024 move to nearly €6 million afterwards.

Economic Momentum Remains A Core Tailwind

Roemer Capital said both Greece and Cyprus have moved beyond post-crisis recovery and are now supported by private-sector-led growth. For Cyprus, the report highlighted recent tax reform and efforts to simplify the legal and regulatory framework, while also noting that limited foreign banking competition continues to support domestic lenders.

Overall, Roemer Capital expects Greek and Cypriot banks to remain well-positioned for profitable loan growth over the coming years.

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