Greece has announced a substantial €20 billion investment plan aimed at addressing its critically low fertility rate. The initiative, set to run until 2035, comes as the country grapples with one of Europe's lowest birth rates, currently standing at 1.3 births per woman, far below the replacement level of 2.1.
The Greek government's strategy includes a range of incentives for couples to have children, such as financial benefits, childcare support, and tax reductions. This comprehensive approach marks a significant increase from the current annual expenditure of €1 billion on pro-natalist measures, which have proven ineffective thus far.
The urgency of the situation is underscored by Greece's record low number of births in 2022. Economic projections paint a grim picture, suggesting a 50% reduction in the workforce and a 31% decrease in economic output by 2100 if current trends persist.
Kyriakos Mitsotakis, the Greek Prime Minister, has not minced words about the severity of the issue, labeling it a "national threat" and a "ticking time bomb" for the country's pension system. Sofia Zacharaki, the Minister for Family and Social Cohesion, echoed this sentiment, emphasizing the need for collective effort to overcome the challenges posed by the demographic crisis.
While Greece's demographic challenges are not unique among developed nations, its situation has been exacerbated by the mass exodus of young people following the 2009 government-debt crisis. This event, which triggered a severe economic downturn lasting until 2018, has had lasting repercussions on the country's demographic landscape.
Experts and government officials have expressed skepticism about the potential impact of these measures. Paul Morland, author of "No One Left: Why the World Needs More Children," points out the lateness of the intervention, suggesting that even if successful, it would take decades to see positive effects on the labor force. However, he acknowledges the importance of recognizing and addressing the issue as a crucial first step.
Thanos Petralias, Greece's Deputy Finance Minister, has criticized the new policy, arguing that the problem "cannot simply be solved by benefits and cash incentives." This perspective highlights the complexity of the demographic challenge and the need for a multifaceted approach.
Greece's demographic crisis is set against the backdrop of a country rich in history and natural beauty. With 18 UNESCO World Heritage Sites and over 6,000 islands, Greece has long been a cultural and tourist hub. Tourism, accounting for about 20% of GDP, plays a crucial role in the country's economy. However, the aging population, with 22% over 65 years old, poses significant challenges to the sustainability of Greece's universal healthcare system and state-run education system.
The country's efforts to boost its birth rate are particularly critical given its position as a member of both the European Union (since 1981) and NATO (since 1952). These international commitments, coupled with Greece's strategic importance in the Mediterranean, underscore the broader implications of its demographic challenges.
As Greece embarks on this ambitious plan to reverse its demographic decline, the world watches with interest. The success or failure of these measures could provide valuable insights for other nations facing similar challenges in the coming decades.
"The statistics and forecasting models are ominous, but we must all make an extra effort to overcome."