Greece is taking a series of measures to alleviate demographic decline. The government in Athens has decided to encourage births through tax breaks and financial rewards.
It is unknown if it will work, but it is a deliberate attempt in a country with one of the lowest fertility rates in Europe, a terrifying demographic situation, driven by an economic crisis lasting over a decade, emigration, and a change in attitude among young people, writes Reuters.
The Prime Minister calls this situation a "time bomb" for pensions.
Currently, Athens spends around one billion euros per year on pro-natal measures. However, it recorded the lowest number of births in history in 2022.
The new measures announced on Thursday by the Ministries of Family, Interior, Finance, and Health include tax exemptions for new parents, care vouchers, raising the minimum wage from 2025, pension increases, and reductions in social contributions.
But demography experts and even government officials acknowledge that there is still a long way to go.
"It is a fact that the demographic issue... cannot be simply solved through benefits and cash incentives," said the Deputy Finance Minister, Thanos Petralias. Addressing the problem also requires improving education and health systems, increasing incomes, and better balancing work and personal life.
Declining birth rates are a problem for governments across Europe, where countries like France, Italy, Norway, and Spain have spent billions of euros on measures to encourage couples to have children.
The measures adopted on Thursday in Athens are part of a broader plan aimed at reversing the declining birth trend in Greece.
The plan also includes offering affordable housing for young people, financial incentives for assisted reproduction, and integrating migrants into the workforce. "They (these measures) will not have a dramatic impact on births," said Byron Kotzamanis, a specialist in demographic issues in Greece.
"There must be a different policy to address the issue at its core," he believes, adding that this includes providing incentives for young people to stay in Greece and attracting back those who have left.