Greek Prime Minister Kyriakos Mitsotakis announced on Sunday a massive package of measures worth 1.6 billion euros to combat the accelerated demographic decline, a phenomenon that risks turning Greece into the oldest country in Europe.
„We know that the standard of living is one if you don’t have children and completely different if you have two or three children,” Mitsotakis stated, as quoted by The Guardian.
"As a state, we must find a way to reward citizens who make this choice."
Tax reductions, incentives, and bonuses for children
The announced measures include:
- 2% reduction in all tax rates
- Total tax exemption for low-income families with four children
- Elimination of property tax in rural areas with fewer than 1,500 inhabitants
These policies will be implemented starting in 2026 and, according to the Prime Minister, represent "the boldest tax reform applied in Greece in the last 50 years."
"Fertility has become a national security issue"
The fertility rate in Greece is only 1.4 children per woman – well below the replacement threshold of 2.1.
According to Eurostat, the country's population could decrease from the current 10.2 million to below 8 million by 2050, when over 36% of the inhabitants will be over 65 years old.
"The population decline has reached existential proportions," said Finance Minister Kyriakos Pierrakakis. "Our tax reform will focus on this issue. As the leader of the economic team, I can say that our number one priority is the demographic problem."
A lost generation and closed schools
The economic crisis that hit Greece 15 years ago is considered the main factor behind the decline in birth rates. Half a million Greeks – mostly educated young people – left the country during that period.
Although the Government introduced a "baby bonus" in 2020 (1,700 euros for the first child, reaching 3,500 euros for the fourth), the results were poor.
Expensive housing and low wages are harsh realities in Greece. Many young people are forced to live with their parents until they are over 30, another factor cited for the reluctance to start a family.
The Ministry of Education announced the closure of over 700 schools due to a lack of students.
Affordable housing on former military bases
Amid growing discontent over the cost of living and corruption allegations affecting the Government's popularity, Mitsotakis promised social measures. Among them:
- Pension increases
- Construction of affordable housing on previously military-owned land
- Elimination of property taxes in isolated areas to encourage young people to relocate to rural areas
International warnings
A study recently published by the prestigious British journal The Lancet warns that Greece is facing "a complex public health crisis generated by demographic changes," endangering not only the healthcare system but also social and economic security.
"Greece's case offers valuable lessons for other countries facing similar pressures," the report states.