Mitsotakis outlines tax cuts and family incentives
Prime Minister Kyriakos Mitsotakis has announced a €1.6 billion program aimed at reversing Greece’s shrinking population. Speaking at the Thessaloniki International Fair, he described the initiative as essential for easing financial pressures on families and persuading young people to remain in the country. The plan is scheduled to begin in 2026 and includes wide-ranging tax cuts, relief for large families, and lower property taxes in remote areas, alongside additional aid for retirees and low-income households.
Birth rates fall to record lows
The government is responding to alarming demographic trends. The Hellenic Statistical Authority reported just 71,455 births in 2023, one of the lowest tallies in recent history, while fertility rates remain far below replacement levels. Combined with years of emigration, these figures have left many villages depopulated and increased pressure on Greece’s pension system. Mitsotakis described the package as a “national survival” effort, underscoring the urgency of the problem.
Critics question impact and cost
Opposition politicians and independent experts argue that tax breaks alone may not be enough to alter long-standing social and economic realities. They warn that without improvements in childcare, housing, and job security, the measures may have limited effect on family decisions. The €1.6bn price tag has also raised questions, as the government must balance the plan with European Union budget rules. Full legislative details are expected later this year, with parliamentary debate anticipated before the 2026 budget cycle.
