Prime minister presents new relief measures
Prime Minister Kyriakos Mitsotakis has revealed a €1.6 billion package aimed at slowing Greece’s population decline. Announcing the plan during his address at the Thessaloniki International Fair, he said the initiative is intended to ease the cost of raising families and give young people more reasons to stay in the country. The measures, which are set to come into force in 2026, combine broad income tax reductions with targeted benefits for large households, younger workers, and residents in rural or island communities. Extra financial support will also be directed toward pensioners and households most exposed to rising living costs.
Falling birth rates deepen concerns
The program comes against the backdrop of stark demographic data. Official figures show Greece recorded just 71,455 births in 2023, one of the lowest totals in decades, with fertility levels well below what is needed to sustain the population. Years of outward migration have compounded the problem, leaving villages empty and straining the national pension system. Mitsotakis characterized the effort as a critical response to what he called an existential challenge for the country’s future.
Debate over effectiveness and fiscal impact
Criticism has already emerged from opposition parties and experts, who argue that financial incentives alone are unlikely to reverse long-term demographic decline. Demographers stress that broader reforms in childcare, housing, and job security are essential if families are to feel confident about having more children. Questions have also been raised about how the €1.6bn plan will fit into Greece’s fiscal obligations under European Union rules. The Finance Ministry is expected to publish detailed legislation in the coming months, with parliament scheduled to debate the measures ahead of the 2026 budget.
