Panicked lawmakers in Greece are hoping to spend their way out of a looming population crisis, with a series of cash incentives designed to reverse the country’s falling birthrate.
Policies designed to facilitate family life—including special vouchers, child care benefits and tax breaks—were unveiled by the government on September 12. However, some critics have derided the plan, saying they it have little effect on the approaching demographic time bomb.
Greece is far from alone in fearing its fate, with European Union member states meeting to discuss a report last week that laid bare the strain due to be placed on welfare systems and public finances with sharp falls in the numbers of working age citizens and increasingly elderly populations.
The U.S. is facing similar problems, with experts warning of a “silver tsunami” after the U.S. Census Bureau said figures suggest that by 2035 older adults will outnumber children—a first in American history.
China’s population is also shrinking, while Japan’s birthrate continues to nose-dive. North Korea reportedly issues punishments to retailers who sell contraceptives in a bid to tackle its own declining population.
Some countries bucking the trend, however, with a skyrocketing population surge forecast for Africa; the population of sub-Saharan Africa is projected to double by 2050, according to the United Nations.
A baby’s stroller flies the Greek flag in this archive image taken at the 2021 Australian Open in Melbourne, Australia. The Greek government has unveiled a series of financial incentives designed to reverse its falling birthrate.
Matt King/Getty Images
Although most policymakers fear the impact of an aging population, with fewer workers to pay for elderly people’s care or staff hospitals, others claim that the trend may ultimately bring benefits. Some environmental campaigners, for example, argue a reduction in global population may help combat climate change.
In any case, Greece announced a raft of measures last week in response to it having one of the lowest fertility rates in Europe. The issue has been attributed to a range of factors, including a long financial crisis making parenthood unaffordable for many, expensive housing, high emigration levels, and changing attitudes among younger people, who wish to pursue careers and other opportunities before deciding to have children.
Greece is the EU‘s second-poorest country in terms of GDP per capita after Bulgaria, yet it currently spends around 1 billion euros a year ($1,112,740,000) on pro-child measures. Despite this, it still recorded its lowest-ever number of births in 2022, according to news agency Reuters.
The measures outlined on Thursday by the family, interior, finance and health ministries include tax relief for new parents, day care vouchers, a rise in the minimum wage from 2025, pension increases and social contribution reductions.
Nevertheless, experts have little optimism about plans. The measures “will have no dramatic impact on births,” said Byron Kotzamanis, a leading demographics researcher in Greece. “There needs to be a different policy to tackle the problem at its core,” he added, arguing that young people must be given incentives to remain in Greece while those who have left must be given inducements to return.
His comments were effectively echoed by the very people launching the latest bid to drive up fertility rates.
Deputy finance minister Thanos Petralias admitted it was impossible to solve the problem by throwing money at it.
“It is a given that the demographic problem…cannot simply be solved by benefits and cash incentives,” he said.
Petralias suggested that improvements must be made to the health care and education systems, as well as creating a better work-life balance to allow people to raise a family.
Newsweek has reached out by email to the office of Greek Prime Minister Kyriakos Mitsotakis seeking further information and comment.
