Government launches major family support initiative
Prime Minister Kyriakos Mitsotakis has rolled out a €1.6 billion program aimed at addressing Greece’s declining population. Speaking at the Thessaloniki International Fair, he said the initiative is intended to ease household financial pressures and provide incentives for young people to remain in the country. Scheduled to begin in 2026, the package features wide-ranging income tax reductions, targeted benefits for larger families, property tax relief in rural and island communities, and additional support for pensioners and low-income households.
Low birth rates and emigration create urgency
The announcement comes in response to a worsening demographic situation. The Hellenic Statistical Authority reported just 71,455 births in 2023, one of the lowest numbers in decades. Fertility rates remain well below replacement levels, while ongoing emigration has left numerous towns and villages sparsely populated, increasing strain on the pension system. Mitsotakis described the measures as essential to securing Greece’s long-term social and economic future.
Analysts question effectiveness and cost
The plan has prompted debate among opposition politicians and experts, who argue that tax breaks alone may not be sufficient to reverse entrenched demographic trends. Specialists highlight that access to affordable childcare, stable housing, and secure employment is critical for encouraging family growth. Concerns have also been raised about how the €1.6 billion program will fit within Greece’s fiscal commitments to the European Union. The Finance Ministry is expected to release detailed legislative proposals in the coming months, with parliamentary debate planned before the program’s implementation in 2026.
