A demographic crisis has gripped much of Europe, and Greece is among the countries that are suffering the most.
It has one of the lowest birth rates in the region, on par with other countries vexed by same problemlike China and Japan, which the Greek Prime Minister called a “time bomb.”
The country's birth rate has been steadily declining year after year, and in 2022 it was the lowest in almost a century.
The government is currently taking steps to prevent a possible demographic decline as the economy ages and labour demand grows.
Last week, Greece announced a package of measures to boost the birth rate through extra childcare benefits and tax breaks for parents.
The European country spends 1 billion euros a year to support the birth rate, Reuters reportedand already offers incentives such as maternity benefits and allowances for baby products. The new measures are part of the government's plans to boost the birth rate.
But efforts to encourage people to have more children will be futile without accompanying economic incentives, as Greece is the second poorest country in the European Union. So the country has also announced increases in pensions and the minimum wage from next year.
A combination of social and economic factors explains Greece’s predicament. About two decades ago, an economic downturn plunged the country into deep debt and austerity, dimming Greeks’ job prospects and leading them to emigrate abroad in search of better opportunities. As Greece’s population ebbed and flowed through wars, it lost much of its skilled workers during the financial crisisThis has had far-reaching consequences, including a labor shortage in the country and ongoing demographic decline.
Today, the Greek economy is in a better position, having grew by 2% in 2023; however, still significantly less than in 2007Problems such as high unemployment and inflation continue. to influence the decision to start and raise families. An aging population could put even more pressure on an economy that already has a high debt load.
It can be difficult to break away from a trend that is inextricably linked to people's lifestyles.
But at least Greece shares his headaches with other countries such as Italy. Russia is also facing a demographic decline, albeit for different reasons, caused by its invasion of Ukraine.
Hungary faces a similar problem. offering loans in the amount of 30,000 euros, as well as subsidies to people in the hope that they will think about expanding their families.
Ultimately, changing the social structure of countries does not happen in isolation; it will require coordinated economic and financial policies.