Greece Unveils Measures to Combat Declining Birthrate Amid Skepticism
Greece introduces financial incentives to boost its low birthrate, but experts question the plan's effectiveness. The country faces a demographic crisis due to economic issues and changing attitudes.
Greece has unveiled a series of measures aimed at addressing its declining birthrate, a critical issue that has been described as a "national threat" by the country's leadership. The initiatives, announced on September 12, 2024, include financial incentives for new parents, but experts remain skeptical about their potential impact.
Greece currently has one of Europe's lowest fertility rates, with only 1.39 children per woman in 2021, significantly below the EU average of 1.53. This demographic challenge is rooted in a complex interplay of factors, including the lingering effects of the 2009-2018 economic crisis, high youth unemployment, and shifting societal attitudes towards family formation.
The newly introduced measures encompass:
- Tax relief for new parents
- Daycare vouchers
- Planned minimum wage increase from 2025
- Pension increases
- Social contribution reductions
Despite allocating approximately one billion euros annually to pro-child initiatives, Greece recorded its lowest number of births in 2022. This trend is part of a broader demographic shift, with the country's population declining since its peak of 11.1 million in 2011.
Thanos Petralias, the deputy finance minister, acknowledged the limitations of the current approach, stating:
"It is a given that the demographic problem ... cannot simply be solved by benefits and cash incentives."
Petralias emphasized the need for a more comprehensive strategy, including improvements in education, healthcare, income levels, and work-life balance.
The demographic crisis in Greece is further complicated by its aging population, with a median age of 45.6 years, one of the highest in Europe. The country's old-age dependency ratio is projected to reach a staggering 63.4% by 2050, putting immense pressure on the pension system and overall economic stability.
Byron Kotzamanis, a leading demography expert, expressed skepticism about the potential impact of these measures:
"They (these measures) will have no dramatic impact on births. There needs to be a different policy to tackle the problem at its core."
Kotzamanis suggests focusing on retaining young talent and attracting back those who left during the economic crisis. This brain drain has contributed to Greece's negative net migration rate of -1.5 per 1,000 population in 2021.
The Greek government plans to unveil a broader strategy later this year, which will include affordable housing for young people, support for assisted reproduction, and policies to integrate migrants into the workforce. However, addressing the root causes of the demographic decline remains a formidable challenge, requiring sustained efforts across multiple sectors.
As Greece grapples with its demographic future, the effectiveness of these measures will be closely watched by other European nations facing similar challenges. The outcome may provide valuable insights into addressing the continent-wide issue of declining birthrates and aging populations.
