Europeans need to re-examine their lifestyle choices if they want to solve the widespread budget problems in national pension systems, Sweden's prime minister said in Stockholm on Thursday at a meeting of northern European countries.

Representatives of nine states in northern Europe convened in the Swedish capital for the one-day Northern Future Forum, meant to focus on boosting the number of women in leadership positions and enabling the elderly to stay in the work force longer.

"We live longer, we are better educated and we are healthier than ever before," said Swedish Prime Minister Fredrik Reinfeldt. "This is, of course, a fantastic development, but it is also true that our education, health and pension system have not adapted to this development, let alone our attitudes and social norms."

Faced with an aging baby-boomer generation and low birth-rates, many national pension funds in Europe are facing major budget shortfalls. Several countries are addressing the issue by raising the retirement age - a remedy often unpopular among many Europeans, who pride themselves on their achievements in social welfare.

Reinfeldt added that Europeans have to be "open-minded" and "prepared to reconsider what you once thought was true."

North-south divide

Alongside Sweden were state delegations from Norway, Finland, Denmark, the United Kingdom, Estonia, Iceland, Latvia and Lithuania. Business representatives like Google Sweden chief Stina Honkamaa and Estonian fashion designers Reet Aus and Heli Jarvinen also took part.

The meeting presented an opportunity for some countries in Europe to form new alliances, as the economic divide between northern and southern Europe threatens to expand.

British Prime Minister David Cameron, who isolated his country last month in opting out of new European Union budget rules, praised the group for their economic strength relative to their southern neighbors.

"It's great to get together with like-minded countries," Cameron said. "Looking at the nine countries that are represented here today, it is true that the economic forecasts are brighter for us than for many other countries in Europe. On average our nine economies will grow about two percent... compared to a negative growth of half a percent for the eurozone."

acb/mz (AP, dpa)