A demographic crisis is significantly impacting much of Europe, with Greece being one of the most affected countries.
Greece’s fertility rates are among the lowest in the region, comparable to those of countries like China and Japan. The Greek Prime Minister has described the situation as a “ticking time bomb.” The birth rates in Greece have been on a consistent decline over the years, with 2022 recording the lowest figures in nearly a century.
In response to the potential demographic decline, the Greek government has introduced measures to counteract these trends. Recently, Greece announced a range of initiatives aimed at increasing the birth rate, including additional childcare benefits and tax breaks for parents.
Currently, Greece allocates €1 billion annually to promote childbirth, providing incentives such as maternity benefits and allowances for baby items, as reported by Reuters. The newly introduced measures are part of the government’s broader plan to boost birth rates.
However, efforts to encourage higher birth rates must be accompanied by economic improvements, as Greece is one of the European Union’s poorest countries. Consequently, Greece has also announced an increase in pensions and the minimum wage, effective next year.
Several social and economic factors contribute to Greece’s situation. Approximately two decades ago, an economic downturn led to severe debt and austerity measures, significantly impacting employment opportunities and prompting emigration for better opportunities abroad. The financial crisis resulted in the country losing much of its skilled talent, exacerbating labor shortages and ongoing demographic declines.
Although the Greek economy has improved, growing by 2% in 2023, it remains considerably smaller than its size in 2007. Issues such as high unemployment and inflation continue to influence decisions regarding family planning. An aging population may further strain the economy, which already faces a substantial debt burden.
Addressing demographic trends deeply ingrained in societal norms and behaviors poses significant challenges.
Greece is not alone in facing these challenges. Countries like Italy, Russia, and Hungary are also grappling with demographic declines, although triggered by different circumstances. For instance, Russia’s situation is influenced by its invasion of Ukraine. In contrast, Hungary has implemented measures such as offering €30,000 loans and subsidies to encourage family growth.
Reversing demographic trends requires a comprehensive approach that includes synchronized economic and financial policies.