Greece to Invest €20 Billion in Measures to Combat Population Decline

October 3, 2024 TruthUSA

Prime Minister Mitsotakis has labeled Greece’s fertility rate of 1.3, one of the lowest in Europe, as ‘a national threat’ due to the country’s shrinking population.

Greece has announced a plan to invest €20 billion ($22 billion) by 2035 in incentives with the goal of reversing the decline in its population.

With a fertility rate far below the 2.5 needed for population growth, the country is experiencing a significant demographic crisis.

The National Demographic Action Plan, which outlines incentives until 2035 to counter the decline, was officially presented on Monday in a cabinet meeting.

Prime Minister Kyriakos Mitsotakis has previously characterized the country’s situation as “a national threat” and a “ticking time bomb” for pensions.

The €20 billion ($22 billion) investment includes incentives for couples to have children such as cash benefits, daycare vouchers, and tax breaks, as stated by Greece’s family ministry.

‘Statistics and Forecasting Models Are Ominous’

During a presentation of the plan on Wednesday, Family and Social Cohesion Minister Sofia Zacharaki expressed that “the statistics and forecasting models are ominous, but we must all make an extra effort to overcome.”

“The ultimate goal is to improve the standard of living,” she added.

Greece, known as the cradle of Western civilization, has encountered significant financial and societal difficulties.

The country has endured a severe debt crisis marked by years of austerity, economic challenges, and social turmoil. Many young Greeks have emigrated in search of better opportunities, while those who remain often struggle with housing affordability due to escalating property prices.

Greek Prime Minister Kyriakos Mitsotakis attends a NATO summit in Madrid on June 30, 2022. (Susana Vera/Reuters) — Greek Prime Minister Kyriakos Mitsotakis attends a NATO summit in Madrid on June 30, 2022. Susana Vera/Reuters

Greece currently has the second-highest unemployment rate in the EU at 9.9 percent, based on July 2024 data, trailing only Spain at 11.9 percent.

As of this month, Greece also holds the second-highest youth unemployment rate (15-24 years) in Europe, at 27.7 percent.

According to labor ministry data, the average monthly salary of 1,175 euros is 20 percent lower than it was 15 years ago.

One Birth Per Two Deaths

Last year, Mitsotakis stated at a demographics conference that Greece essentially had just one birth for every two deaths in 2022.

“Our population is one of the oldest in Europe. The number of Greek women aged 20 to 40 has declined by 150,000 in the past five years,” he remarked.

According to Greece’s National statistics agency ELSTAT, in 2023, Greece recorded 71,455 live births, a 6.1 percent decrease from the previous year, while deaths totaled 128,101.

‘Most Serious Crisis Humanity is Facing’

Experts in demography have expressed doubts about the effectiveness of these plans in reversing the trend.

Data scientist and demographer Stephen J. Shaw has cautioned that Population decline is “the most serious crisis humanity is facing.”

In an interview with NTD’s “British Thought Leaders” last year, he noted that population decline—observed in other developed nations like Italy and Japan—is particularly concerning as no civilization has recovered from it.

“In fact, there’s evidence that this is precisely how civilizations crumble,” Shaw explained, pointing out that towards the end of the Roman Empire, efforts were made to boost birthrates, including imposing taxes on the childless.

Data scientist and demographer Stephen J. Shaw poses for a photo after an interview with NTD's "British Thought Leaders" program. (NTD) — Data scientist and demographer Stephen J. Shaw poses for a photo after an interview with NTD’s “British Thought Leaders” program. NTD

“There are Roman experts who attribute demography as one of the causes for the decline of the Roman Empire—it didn’t collapse overnight; it basically faded away. And that’s exactly what’s happening to us now. We’re fading away. This is what the process of fading away feels like,” he remarked.

He highlighted “baby shocks” as a factor contributing to declining birthrates: global economic events such as oil or currency crises that prompt couples to postpone having children.

Shaw asserted that recovery from these shocks is unlikely, and they contribute to a lifetime of childlessness.

Before 1973, childlessness in the UK was “insignificant” at under 5 percent. However, in just three to four years, this proportion soared to over 20 percent, with the nation heading towards 30 percent lifelong childlessness.

Reuters contributed to this report.

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