Greece faces one of the most serious demographic problems in Europe and it is called demographics.
According to forecasts, by 2050 the country’s population could fall to 8 million people and the proportion of economically inactive will exceed 36%.
The government announced a package of measures worth €1.6 billion aimed at stimulating the birth rate and bringing back citizens who emigrated, but is it enough?
Causes of the Crisis
The main factors contributing to the population decline include low birth rates.
In 2022, the fertility rate was ‘1.3’: a figure well below the replacement level of ‘2.1.’ Whilst mass emigration, especially among young people and skilled professionals, continued to rise following the 2008 financial crisis.
These trends are leading to school closures and a shrinking workforce, threatening the country’s economic stability.
Government Measures
The announced reform package includes:
- Tax cuts: by 2% for all income categories, with a full tax exemption for families with four or more children.
- Tax breaks for young people: income tax exemption for citizens under 25 with an income of up to 20,000 euros.
- Reduction of property taxes: in rural areas with a population of less than 1,500.
- Construction of affordable housing: on former military bases and in rural areas.
These measures are aimed at improving the financial situation of families, especially in rural areas, and creating incentives for the return of citizens who have emigrated.
Impact on Emigration
Greece is not only looking to boost birth rates, but also to attract back its citizens who have left abroad. Unlike Italy, where emigration is also a problem, Greece is focusing on tax breaks and improving living conditions in rural areas to make returning more attractive.
Historical Context
Greece experienced several waves of mass emigration in the 20th century. After World War II and the 1946–49 Civil War, many Greeks emigrated to the United States, Germany, and Australia in search of better living conditions.
Between 1955 and 1970, about a million people left the country, representing more than 10% of its population. Emigration was driven by economic hardship and political instability.
The 2008 economic crisis worsened the situation. High unemployment, especially among young people, which reached 58.2% in 2013, prompted many young professionals to seek work abroad. This led to a new wave of emigration, with the outflow increasing by 300% compared to the pre-pandemic period.
Outlook
While financial incentives can have a positive impact, experts warn that comprehensive measures are needed to address the demographic crisis, including improving the quality of education, healthcare and job creation.
It is also important to consider that emigration is not only related to economic factors, but also to quality of life and opportunities for personal and professional growth.
The Greek €1.6 billion package represents a significant step in the fight against the demographic crisis.
However, to achieve sustainable results, comprehensive policies are needed that aim to improve all aspects of citizens’ lives. It is important that government measures are complemented by strategies that contribute to the creation of attractive conditions for living and working in Greece, especially in rural areas.
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