A demographic crisis is hitting many European countries, with Greece being one of the countries bearing the brunt.
It has one of the lowest birth rates in the region, Same problemThe Greek Prime Minister has called China and Japan “time bombs.”
The country’s birth rate has been declining consistently year after year, hitting its lowest in nearly 100 years in 2022.
The government is now taking steps to stave off a possible population decline as the economy ages and demand for labour increases.
Greece last week announced a series of measures to help boost birth rates through extra childcare benefits and tax cuts for parents.
The European country spends 1 billion euros a year on promoting childbirth. Reuters reported.The government already offers incentives such as maternity allowances and discounts on baby products, and the new measures are part of a government plan to boost the birth rate.
But as Greece is the second poorest country in the European Union, efforts to encourage people to have more children will be futile without a corresponding economic boost, so it has also announced increases to pensions and the minimum wage from next year.
Greece’s predicament can be explained by a combination of social and economic factors. Around 20 years ago, a sharp economic downturn led the country into heavy debt and austerity measures, diminishing employment prospects for Greeks and leading them to emigrate in search of better opportunities. Greece has experienced population increases and decreases due to wars, but its greatest losses have been in the form of a rapid economic recovery. Skilled manpower during the financial crisisThese are creating far-reaching impacts, including labor shortages and ongoing population decline across the country.
The Greek economy is now in a better position. 2% increase In 2023, however, 2007High unemployment, inflation and other challenges continue Make an impact The decision to have and grow families. As the population ages, this could put additional pressure on an economy already carrying a high debt burden.
It can be hard to break away from trends that are intrinsically tied to the way people live their lives.
But at least Greece shares the same headaches as other countries such as Italy, and Russia is also facing a population decline, albeit for a different reason triggered by its invasion of Ukraine.
Hungary is facing a similar challenge, and is offering its citizens €30,000 in loans and grants in the hope that they will consider starting a family.
Ultimately, reversing the social structure of each country cannot be achieved alone; economic and monetary policies need to work in tandem.
