Greece unveils financial incentives and tax relief to address declining birthrate

·

On Thursday, September 12, Greece announced a series of measures aimed at addressing its declining birthrate, including vouchers, childcare benefits, and tax breaks for new parents.

With one of the lowest fertility rates in Europe, Greece’s demographic challenges stem from a decade-long economic crisis, emigration, and shifting attitudes among younger generations. The Prime Minister has referred to the situation as a national crisis and a “ticking time bomb” for the country’s pension system.

Greece currently allocates approximately one billion euros annually to pro-child initiatives, but in 2022, the country recorded its lowest birthrate in history.

The new measures, outlined by the ministries of family, interior, finance, and health, include tax relief for new parents, daycare vouchers, a minimum wage increase in 2025, pension hikes, and reductions in social contributions.

However, both demography experts and government officials recognise that the challenge is far from resolved.

“It is a given that the demographic problem… cannot simply be solved by benefits and cash incentives,” said Deputy Finance Minister Thanos Petralias at a press conference on Thursday.

Petralias emphasised that a more comprehensive solution would require improvements to education and healthcare systems, increased income levels, and better work-life balance conditions.

Falling birthrates are a growing concern across Europe, with countries like France, Italy, Norway, and Spain having spent billions on similar pro-child initiatives, yet seeing limited success.

The measures introduced are part of a larger plan to reverse the country’s declining birthrate. While officials initially planned to unveil the full plan in May, it has now been delayed until later this year. The plan will reportedly include affordable housing for young people, financial support for assisted reproduction, and efforts to integrate migrants into the labor force.

“They (these measures) will have no dramatic impact on births,” said Byron Kotzamanis, one of Greece’s leading demography experts.

“There needs to be a different policy to tackle the problem at its core,” he added, stressing the need for incentives to keep young people in Greece and attract back those who have emigrated.

Source: Ekathimerini.

greek film festival melbourne

Advertisement

Share:

KEEP UP TO DATE WITH TGH

By subscribing you accept our Terms of Service and Privacy Policy.

Advertisement

Latest News

From family legacy to the Federal Court: A look into Justice Anastasis Liveris’ legal career

In an exclusive interview with The Greek Herald, the Greek Australian judge reflected on how he felt to achieve this major career milestone.

The Greek influence on Australian television

Among the many communities that helped shape TV culture were Greeks, whose presence both on and off screen left a lasting mark.

Critically endangered monk seal welcomes newborn on Karpathos island

The first Mediterranean monk seal (Monachus monachus) birth of 2025 has been confirmed on the island of Karpathos.

Campaigners celebrate as Milos luxury hotel project is halted

Environmental activists have welcomed the suspension of a controversial five-star hotel project on Milos’s world-famous “moon beach”.

Historic first: Greek chess player defeats reigning world champion

For the first time since the official establishment of the chess world championship, a Greek player has beaten the sitting world champion.

You May Also Like

Melbourne branch of the National Hellenic Research Foundation ‘Eleftherios K. Venizelos’ opens

A Melbourne branch of the National Hellenic Research Foundation 'Eleftherios K. Venizelos' has opened since last week.

‘Mothers are special’: Here’s how Greek Australians celebrated Mother’s Day this year

To mark the occasion this year, Greek Australians celebrated Mother's Day with special cakes, luncheons and festivities.

Hellenism makes triumphant return to Sydney Opera House for Greek National Day

Hellenism made a triumphant return to Sydney Opera House for Greek National Day on Sunday, March 24. Full gallery and story here.