Large parts of Europe are currently experiencing a demographic crisis. Greece is one of the countries suffering the most.
It has one of the lowest fertility rates in the region – comparable to other countries that are angry about the same problemlike China and Japan – which the Greek Prime Minister has described as a “ticking time bomb”.
The birth rate in the country has been declining steadily year after year, and 2022 marks the lowest level in nearly a century.
The government is now taking measures to avert a possible population decline as the economy ages and the need for labor increases.
Last week, Greece announced a series of measures to help increase the birth rate through additional childcare benefits and tax breaks for parents.
The European country spends 1 billion euros annually to promote births. Reuters reportedand already offers incentives such as maternity benefits and subsidies on baby products. The new measures are part of the government’s plans to increase birth rates.
But without the economic stimulus that comes with it, all efforts to encourage people to have more children will be in vain. Greece is the second poorest country in the European Union. That is why the country also announced an increase in pensions and the minimum wage starting next year.
A combination of social and economic factors explains Greece’s predicament. About two decades ago, an economic nosedive plunged the country into high levels of debt and austerity, dwarfing Greeks’ employment prospects and prompting them to emigrate in search of better opportunities abroad. While Greece experienced population growth through wars, it lost its largest qualified professionals during the financial crisisThese have far-reaching consequences, including the country’s labour shortage and ongoing demographic decline.
The Greek economy is in a better position today. increased 2% in 2023, but is still significantly smaller than in 2007Challenges such as high unemployment and inflation remain Effects the decision to start and expand families. An ageing population could put further strain on an economy that is already burdened with high debt.
It can be difficult to break out of a trend that is inextricably linked to people’s way of life.
But at least Greece shares his headache with other countries such as Italy. Russia is also facing a population decline, albeit for different reasons, triggered by the invasion of Ukraine.
Hungary faces a similar problem. Offer loans of 30,000 euros and grants to people in the hope that they will think about starting a family.
Ultimately, reversing the social fabric in individual countries is not an isolated process; it requires working hand in hand with economic and financial policy.