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Greece Announces Support Measures for New Parents

Family Parents Children beach Greece
Greece will increase the birth allowance by up to 1,500 euros. Credit: Midjourney for GreekReporter

Greece announced a package of measures for new parents aimed at helping families cope with the rising cost of living and tackling the demographic problem facing the country.

Minister of National Economy and Finance Kostis Hatzidakis and Minister of Social Cohesion and Family Sofia Zacharaki announced on Monday during a press conference the increase in the birth allowance from 400 to 1,500 euros.

This increase will have a retroactive effect, as it will also apply to births that occurred in 2023.

More specifically, for the first birth, the amount increases from 2,000 to 2,400 euros, for the second to 2,700 euros (+700 euros), for the third to 3,000 euros (+1,000 euros) and for those with many children to 3,500 euros (+1,000 euros). The allowance is expected to be granted in April in two equal installments.

The new measure concerns approximately 300,000 families over two years.

The minister stated that since the economy is on a good trajectory, the government can support such social measures. He added that this year there are seven new measures for new parents.

Specifically, the increase by 1,000 euros of the tax-free threshold, the increase of the maternity allowance from 4 to 9 months, the increase of the heating allowance from 3,000 to 5,000 euros for each child, the social allowance, the reform of the payroll in the public sector, and the profit cap on baby formula.

Government officials hope that the new support measures will slow down the downward trend in the reproduction rate.

Parents in Greece face rising cost of living

The Greek government hopes that the measures on young families will help them come to terms with the rising cost of living. Although Greece has outpaced most European economies in the past years, many citizens are struggling, as the prices of basic foods have soared.

Greece is also facing a demographic crisis with the country experiencing the lowest population reproduction rate in Europe. The situation has reached alarming proportions with more deaths occurring than births.

In 2010, Greece recorded 114,766 births compared to 109,084 deaths. However, over a decade, the numbers have shifted dramatically. In 2020, Greece reported only 84,717 births but a staggering 131,084 deaths. This trend has led to a significant population decline.

The reproduction rate in Greece is now one of the lowest in the world, standing at 1.3 children per woman. This is well below the stability limit of 2.1 children per woman.

Last October. PM Kyriakos Mitsotakis warned that the demographic collapse in Greece is becoming an “existential threat” to the future of the nation.

“The pandemic certainly played its role, but we have to look at the long-term trends and these are extremely worrying,” Mitsotakis said.


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