New measures unveiled at Thessaloniki
Prime Minister Kyriakos Mitsotakis has set out a €1.6 billion plan intended to confront Greece’s demographic decline. Speaking at the Thessaloniki International Fair, he said the initiative seeks to ease the financial strain on families and create better conditions for young people to stay in the country. Scheduled to start in 2026, the program combines broad income tax reductions with special incentives for large families and younger workers, along with property tax cuts in remote regions. Extra assistance will also be directed to pensioners and households most affected by rising prices.
Demographic pressures intensify
The decision follows a sharp drop in birth numbers. Figures from the Hellenic Statistical Authority show that only 71,455 children were born in 2023, one of the lowest figures in modern times. Fertility rates remain far below the level required to sustain the population, and years of outward migration have left many towns and villages depleted while adding pressure to the pension system. Mitsotakis described the situation as critical, arguing that demographic decline poses one of the most serious threats to Greece’s future.
Debate over effectiveness and budget impact
Reactions to the announcement were swift. Opposition parties and several analysts argued that financial incentives alone are unlikely to reverse long-standing demographic patterns. Demographers point out that families are more likely to respond to improved childcare, housing opportunities, and job security than tax breaks alone. At the same time, questions have been raised about how the €1.6bn package will be funded while keeping within the European Union’s fiscal framework. The Finance Ministry is expected to release draft legislation in the coming months, with parliamentary discussions to follow ahead of the program’s planned rollout in 2026.
