Demographic Problem: Are Tax Cuts Enough?

The demographic problem in Greece remains a significant issue, with the population decreasing by 500,000 people in 13 years. Birth rates have declined dramatically, reaching 72,300 in 2023, about half of the average recorded in the two decades from 1951-1970.

Prime Minister K. Mitsotakis acknowledged that the demographic issue is a long-term problem affecting the entire Western world, not just Greece. The government has established a birth allowance and increased vouchers for kindergartens, but recognizes that these are not enough.

During the 89th Thessaloniki International Fair (DEΘ), the government announced tax rate reductions and zero tax for young people up to 25 years old. Specifically, tax rates are reduced by 2 percentage points, and zero tax is established for young people up to 25 years old with income up to 20,000 euros.

However, the measures are criticized because a large proportion of young people are unemployed or work in flexible forms of employment. It is also pointed out that promoting 13-hour workdays contradicts the effort to strengthen the family.

Deep reforms are needed in terms of labor and social welfare, such as decent wages, public and free kindergartens, social security, and solutions to the housing issue.