Government outlines sweeping support package
Prime Minister Kyriakos Mitsotakis has announced a €1.6 billion initiative aimed at addressing Greece’s shrinking population. Delivering his annual address at the Thessaloniki International Fair, he said the program is designed to ease financial pressures on families and give younger citizens stronger incentives to remain in Greece. Beginning in 2026, the measures will introduce broad cuts to income tax, provide significant relief for households with four or more children, and reduce property taxes in underpopulated rural and island areas. Additional payments will also go to pensioners and vulnerable families struggling with high costs.
Declining birth rates spark alarm
The announcement comes amid mounting concern over demographic trends. Data from the Hellenic Statistical Authority recorded only 71,455 births in 2023, one of the lowest totals in decades, with fertility well below replacement level. Years of youth migration have intensified the problem, leaving entire villages depopulated and placing extra strain on Greece’s social security system. Mitsotakis described the initiative as a necessary intervention to safeguard the country’s long-term stability.
Questions over outcomes and fiscal balance
Opposition leaders and independent analysts have voiced doubts about whether tax breaks and cash incentives will be enough to shift deep-rooted demographic patterns. Specialists emphasize that without affordable childcare, stable employment, and accessible housing, families may still hesitate to have more children. The financial cost of the program has also prompted scrutiny, as Greece must align its spending with European Union fiscal rules. Detailed legislation is expected later this year, with parliamentary debate planned before the measures take effect in 2026.
