Greece has unveiled a €1.6bn (£1.4bn) relief package aimed at tackling a demographic crisis that threatens to make it the oldest nation in Europe. The measures, announced by Prime Minister Kyriakos Mitsotakis, include tax breaks and financial incentives to encourage families to have more children.
The package, described as the boldest tax reform in over 50 years, will reduce tax brackets by two percentage points and introduce a zero rate for low-income families with four children. It will be rolled out in 2026, funded by the fiscal surplus as the economy recovers.
Greece's fertility rate stands at 1.4 children per woman, well below the replacement level of 2.1. The population is projected to fall from 10.2 million to under 8 million by 2050, with 36% aged over 65, according to Eurostat. Finance Minister Kyriakos Pierrakakis said fertility rates have halved since the country's economic crisis began 15 years ago.
The crisis, which saw over 500,000 Greeks leave in search of work, is blamed for the decline. The government hopes the new measures, including tax exemptions for rural settlements with fewer than 1,500 residents, will reverse the exodus and address pressures on pensions, healthcare, and national security.
Previous initiatives, such as a baby bonus of up to €3,500 per child and monthly stipends, have had limited effect amid rising living costs. The education ministry closed over 700 schools this year due to a lack of pupils. Mitsotakis also pledged to increase pensions and build affordable housing on abandoned military sites, while scrapping real estate tax in remote areas to attract young people.
