Much of Europe is experiencing a demographic crisis, and Greece is among the countries facing the brunt of it.
It has one of the lowest fertility rates in the region – on par with other countries that are feeling the wrath of Same problemBut other eurozone countries face similar challenges, such as China and Japan – which the Greek prime minister has described as a “time bomb”.
The country’s birth rate has been falling steadily year after year, with 2022 hitting its lowest level in nearly a century.
The government is now taking steps to avoid a potential demographic decline as the economy ages and the need for workers increases.
Last week, Greece announced a package of measures to help boost its birth rate through additional childcare benefits and tax breaks for parents.
The European country spends one billion euros annually to encourage childbirth, Reuters news agency reportedThe government already offers incentives such as maternity benefits and allowances for baby supplies. The new measures are part of government plans to boost birth rates.
But efforts to encourage people to have more children will be in vain without the accompanying economic boost, as Greece is the second-poorest country in the European Union. So the country has also announced increases in pensions and the minimum wage starting next year.
A combination of social and economic factors explains Greece’s predicament. Nearly two decades ago, economic decline plunged the country into deep debt and austerity, squeezing job opportunities for Greeks and pushing them to emigrate in search of better opportunities abroad. While Greece’s population declined during the wars, it also lost most of its financial resources. Skilled Talent During the Financial CrisisThis has had far-reaching effects, including a labor shortage in the country and an ongoing demographic decline.
The Greek economy is in a better position today, after grew by 2% In 2023, however, it is still much smaller than In 2007Challenges such as high unemployment and inflation continue. To influence The decision to start and grow a family would add pressure on an economy already suffering from a high debt burden.
It can be difficult to break out of a trend that is intrinsically linked to people’s lifestyle.
But at least Greece shares the headache with countries like Italy. Russia is also facing demographic decline, albeit for different reasons stemming from its invasion of Ukraine.
Hungary faces a similar dilemma. It is offering loans of 30,000 euros as well as subsidies to people in the hope that they will consider expanding their families.
Ultimately, reversing countries’ social fabric does not happen in isolation – it will require the integration of economic and fiscal policies.
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