Greece has announced a €1.6bn package of tax breaks and financial incentives to confront its deepening demographic crisis, which could leave it the oldest country in Europe by mid-century.
Prime Minister Kyriakos Mitsotakis said the initiative—described as the boldest tax reform in more than 50 years—aims to ease the financial burden on families and encourage higher birth rates. Beginning in 2026, measures will include across-the-board tax cuts, a zero rate for low-income families with four children, and relief for households in rural areas.
Fertility in Greece averages 1.4 children per woman, far below the 2.1 replacement level. Eurostat projects the population will shrink from 10.2 million to under 8 million by 2050, with more than a third aged over 65. Officials warn this trend threatens pensions, healthcare, and economic stability.
Finance Minister Kyriakos Pierrakakis noted that birth rates have halved since the financial crisis, when austerity prompted over 500,000 mostly young Greeks to emigrate. The government hopes tax incentives and rural housing measures will help reverse that trend.
Although past efforts like baby bonuses and child subsidies have had limited success, authorities believe the stronger package could encourage younger generations to start families. Still, high living costs, stagnant wages, and a housing shortage remain major barriers. Education authorities recently shut down more than 700 schools due to declining enrollment.
Analysts say the demographic issue has become a “national threat.” A recent Lancet study also warned that the scale of population decline could undermine Greece’s health system and long-term resilience amid broader economic and climate challenges.