In a bold move to confront one of Europe's most severe demographic crises, the Greek government has announced a sweeping €1.6 billion emergency package designed to reverse the nation's plummeting birth rate and rapidly ageing population.
Prime Minister Kyriakos Mitsotakis revealed the comprehensive strategy, which directly tackles what he termed a "national threat." The ambitious plan aims to provide immediate financial relief to young families and create long-term incentives for raising children in Greece.
Financial Incentives for Families
The centrepiece of the package includes substantial direct payments to new parents. Families will receive a €2,000 bonus for every newborn, with an additional €1,500 instalment following the child's second birthday. This financial support is specifically designed to alleviate the initial costs of raising a child.
Beyond one-time payments, the government is implementing ongoing financial support through increased child benefit payments and significant tax reductions for families with three or more children.
Housing and Energy Support
Recognising housing costs as a major barrier for young families, the package includes innovative housing support measures. First-time homebuyers with children will benefit from reduced property transfer taxes, while large families gain access to preferential terms on state-backed mortgages.
The relief extends to essential utilities, with eligible families receiving substantial discounts on electricity bills—a crucial support given recent energy price surges across Europe.
Tackling a Deepening Crisis
This emergency intervention responds to alarming statistics showing Greece's birth rate has fallen to among the lowest in the European Union. Current projections suggest the population could shrink from nearly 11 million to just 7 million by 2050, creating an unsustainable demographic structure with profound implications for the economy, healthcare system, and social security network.
The demographic decline has been accelerated by Greece's decade-long financial crisis, which triggered mass emigration of young professionals and delayed family planning for many couples facing economic uncertainty.
Broader European Context
Greece joins several European nations implementing aggressive pronatalist policies. Countries from Italy to Hungary have introduced various measures to combat ageing populations, with mixed results. The Greek approach distinguishes itself through its comprehensive nature, addressing both immediate financial pressures and long-term housing security.
Demographers will closely watch the implementation and effectiveness of these measures, as Southern European countries face particularly acute demographic challenges compared to their northern counterparts.
The success of this €1.6 billion gamble could determine not just Greece's demographic future, but serve as a model for other nations grappling with similar population crises.
