Mitsotakis unveils comprehensive support for families and youth
Prime Minister Kyriakos Mitsotakis has revealed a €1.6 billion program aimed at countering Greece’s declining population. Addressing the Thessaloniki International Fair, he emphasized that the plan is designed to alleviate financial pressures on households and encourage young people to remain in the country. The package, set to take effect in 2026, includes broad income tax cuts, targeted assistance for larger families, reductions in property taxes in rural and island communities, and additional aid for pensioners and households facing high living expenses.
Declining birth rates intensify demographic concerns
The government’s move comes amid alarming population trends. The Hellenic Statistical Authority reported just 71,455 births in 2023, marking one of the lowest totals in decades. Fertility rates remain well below the replacement threshold, while ongoing emigration has left numerous towns and villages sparsely populated, increasing strain on the pension system. Mitsotakis described the initiative as a crucial step to safeguard Greece’s long-term economic and social stability.
Debate over effectiveness and fiscal feasibility
The package has prompted debate among opposition parties and analysts, many of whom caution that financial incentives alone may not reverse deep-seated demographic trends. Experts highlight that improvements in childcare, affordable housing, and job security are essential to encourage families to have more children. Concerns have also been raised over how the €1.6 billion program will fit within Greece’s European Union fiscal obligations. Detailed legislative proposals are expected from the Finance Ministry in the coming months, with parliamentary discussion scheduled ahead of the program’s rollout in 2026.
