ENS

Greece Spends to Fight Population Decline

Level 3 Article · Reviewed Source: theguardian.com
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A view of Athens with the Parthenon in the distance.
Athens city view.

Greece has announced a €1.6 billion plan to fight its falling population. Prime Minister Kyriakos Mitsotakis said the plan will begin in 2026 and is the country’s “boldest tax reform in more than 50 years.”

Financial Support for Families

The new measures include a 2% cut for all tax groups and no tax at all for low-income families with four children. Families will also receive higher payments for having children. A “baby bonus,” first offered in 2020, has increased to €1,700 for a first child to €3,500 for a fourth child, plus up to €140 per child each month.

The government will also remove real estate taxes in remote areas to encourage young people to move to the countryside, where houses are more affordable than in cities.

Why the Crisis Is Serious

Greece’s fertility rate is only 1.4 children per woman, far below the replacement rate of 2.1. Experts say the population, now 10.2 million, could fall below 8 million by 2050. By then, 36% of Greeks may be over 65.

Officials warn this puts pensions, healthcare, and the job market at risk. The finance minister, Kyriakos Pierrakakis, said fertility rates dropped sharply after the economic crisis 15 years ago, during a period of austerity. During that time, more than 500,000 Greeks left the country in search of work, an exodus of mostly young and skilled workers.

Challenges Ahead

Although the government is offering incentives, many young Greeks say high living costs and low wages make it hard to start families. Housing prices are so high that many people live with their parents into their 30s. This year, Greece’s education ministry even closed over 700 schools because there were not enough students.

Officials call the population problem a “national threat,” but it remains to be seen if the new plan will change the country’s future.

Speaker: American Male  Duration: 2:19  YouTube

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Discussion Questions
  1. How many brothers or sisters do you have? Is it more or less than your parents have?
  2. Several countries around the world have low birth rates. Why are people deciding to have fewer children?
  3. Does your country pay a baby bonus to couples when they have children? Is this kind of policy a good idea?
  4. How serious are the problems that Greece is facing? Do you agree that they are a "national threat"?
  5. Do you think tax cuts will help to raise the number of births? Explain.
  6. How does a low fertility rate affect schools, hospitals, and pensions?
  7. Do you think housing costs change people’s decisions about having children?
  8. Until what age do people usually live with their parents in your country?
  9. Would you consider living in the countryside to save money? Why or why not?
  10. A lot of young people left Greece for economic reasons. How can Greece encourage them to come back?

Discussion Questions

  1. How many brothers or sisters do you have? Is it more or less than your parents have?
  2. Several countries around the world have low birth rates. Why are people deciding to have fewer children?
  3. Does your country pay a baby bonus to couples when they have children? Is this kind of policy a good idea?
  4. How serious are the problems that Greece is facing? Do you agree that they are a "national threat"?
  5. Do you think tax cuts will help to raise the number of births? Explain.
  6. How does a low fertility rate affect schools, hospitals, and pensions?
  7. Do you think housing costs change people’s decisions about having children?
  8. Until what age do people usually live with their parents in your country?
  9. Would you consider living in the countryside to save money? Why or why not?
  10. A lot of young people left Greece for economic reasons. How can Greece encourage them to come back?