ATHENS, Sept 12 (Askume) – Greece on Thursday outlined a raft of measures to tackle a falling birth rate, from vouchers and childcare benefits to tax breaks for new parents, but experts questioned the plan’s effectiveness.

Greece has one of the lowest fertility rates in Europe and its demographic situation is dire, due to a decade-long economic crisis, immigration, and changing attitudes among young people . The prime minister called it a national threat and a “ticking time bomb” for pensions.

Currently, the organization spends around €1 billion a year on measures in the interest of children. However, the number of births fell to a record low in 2022.

The measures outlined on Thursday by the ministries of family, interior, finance and health include tax breaks for new parents, daycare vouchers, a rise in the minimum wage from 2025, increased pensions and cuts in social contributions.

But demographic experts and even government officials agree that there is still a long way to go.

“It is certain that the demographic problem… cannot be solved by welfare and cash incentives alone,” Deputy Finance Minister Thanos Petralias told reporters on Thursday.

Petralias said solving the problem requires improving education and health systems, increasing incomes and a better work-life balance.

Falling birth rates are a problem for governments across Europe, with countries including France, Italy, Norway and Spain spending billions of euros on measures to support children but having little success.

The measures are part of a broader plan aimed at reversing Greece’s falling birth rate that officials told Askume would be rolled out in May but has been delayed until the end of the year.

The plan includes affordable housing for young people, financial incentives for assisted reproduction, and integrating immigrants into the workforce.

Byron Kouzamanis, a leading Greek demographer, said: “These measures will not have any significant impact on the birth rate.”

“Different policies are needed to address the root causes of the problem,” he said. These include encouraging young people to stay in Greece and attracting back those who have left.

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Last Update: September 12, 2024

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