ATHENS -Greece announced a series of initiatives aimed at countering its declining birthrate. These measures, which include vouchers, childcare benefits, and tax breaks for new parents, have raised concerns among experts about their potential effectiveness.
Greece’s fertility rate is among the lowest in Europe, a situation exacerbated by a prolonged economic crisis, emigration, and shifting perspectives among young people. The prime minister has labeled the issue a national threat and described it as a “ticking time bomb” for the pension system.
Currently, Greece allocates about one billion euros annually to various pro-child programs, yet 2022 saw the country’s lowest recorded birthrate.
The newly announced initiatives involve collaboration between the family, interior, finance, and health ministries, offering tax relief for new parents, daycare vouchers, a planned increase in the minimum wage starting in 2025, pension hikes, and reduced social contributions.
Despite these measures, both demography experts and certain government officials recognize the challenges that lie ahead.
Deputy Finance Minister Thanos Petralias stated, “The demographic issue cannot be resolved solely with benefits and cash incentives.”
Petralias emphasized the need for improvements in the education and health sectors, enhanced income levels, and better work-life balance to address the problem more comprehensively.
The issue of declining birthrates is not unique to Greece, as countries across Europe, including France, Italy, Norway, and Spain, have invested billions in similar programs with limited success.
These measures form part of a larger strategy aimed at reversing Greece’s declining birthrate. Initially set for release in May, this plan’s unveiling has been delayed until later this year. It includes provisions for affordable housing for young people, financial support for assisted reproduction, and efforts to integrate migrants into the workforce.
Byron Kotzamanis, a prominent demography expert in Greece, expressed skepticism about the plan’s potential impact. “These measures will not lead to a significant increase in birth rates,” he noted, suggesting a need for policies that encourage young people to stay in Greece and attract back those who have emigrated.
Source Reuters