Greece Spends to Fight Population Decline
Warm-up Questions: (1) What is the population of your country? Is it falling or growing? (2) What do you know about Greece?
Greece has announced a €1.6 billion plan to fight its falling population. Prime Minister Kyriakos Mitsotakis said the plan will begin in 2026 and is the country’s “boldest tax reform in more than 50 years.”
Financial Support for Families
The new measures include a 2% cut for all tax groups and no tax at all for low-income families with four children. Families will also receive higher payments for having children. A “baby bonus,” first offered in 2020, has increased to €1,700 for a first child to €3,500 for a fourth child, plus up to €140 per child each month.
The government will also remove real estate taxes in remote areas to encourage young people to move to the countryside, where houses are more affordable than in cities.
Why the Crisis Is Serious
Greece’s fertility rate is only 1.4 children per woman, far below the replacement rate of 2.1. Experts say the population, now 10.2 million, could fall below 8 million by 2050. By then, 36% of Greeks may be over 65.
Officials warn this puts pensions, healthcare, and the job market at risk. The finance minister, Kyriakos Pierrakakis, said fertility rates dropped sharply after the economic crisis 15 years ago, during a period of austerity. During that time, more than 500,000 Greeks left the country in search of work—an exodus of mostly young and skilled workers.
Challenges Ahead
Although the government is offering incentives, many young Greeks say high living costs and low wages make it hard to start families. Housing prices are so high that many people live with their parents into their 30s. This year, Greece’s education ministry even closed over 700 schools because there were not enough students.
Officials call the population problem a “national threat,” but it remains to be seen if the new plan will change the country’s future.
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The new measures include a 2% cut for all tax groups and no tax at all for low-income families with four children. Families will also receive higher payments for having children. A “(2) __________,” first offered in 2020, has increased to €1,700 for a first child to €3,500 for a fourth child, plus up to €140 per child each month.
The government will also remove real estate taxes in remote areas to encourage young people to move to the (3) __________, where houses are more affordable than in cities.
Greece’s (4) __________ rate is only 1.4 children per woman, far below the replacement rate of 2.1. Experts say the population, now 10.2 million, could fall below 8 million by 2050. By then, 36% of Greeks may be over 65.
Officials warn this puts pensions, healthcare, and the job market at risk. The finance minister, Kyriakos Pierrakakis, said fertility rates dropped sharply after the economic crisis 15 years ago, during a period of austerity. During that time, more than 500,000 Greeks left the country in search of work—an exodus of mostly young and skilled workers.
Although the government is offering (5) __________, many young Greeks say high living costs and low wages make it hard to start families. Housing prices are so high that many people live with their parents into their 30s. This year, Greece’s education ministry even closed over (6) __________ schools because there were not enough students.
Officials call the population problem a “national threat,” but it remains to be seen if the new plan will change the country’s future.
Comprehension
Answer each question by selecting True or False, then click Check Answers to see your results.
Comprehension
1. The government’s plan will begin in 2026. TRUE/FALSE
2. Greece’s fertility rate is higher than the replacement rate. TRUE/FALSE
3. Over 500,000 Greeks left the country to find work during the crisis. TRUE/FALSE
4. Families with four children will pay a higher tax rate. TRUE/FALSE
Vocabulary n = noun, v = verb, adj = adjective, adv = adverb, prep = preposition, phr. v = phrasal verb, pl = plural
Drag each vocabulary word to its matching definition:
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Vocabulary
Match each vocabulary word with a definition:
1. Incentive (n)
2. Fertility (n)
3. Replacement rate (n)
4. Austerity (n)
5. Exodus (n)
6. Baby bonus (n)
7. Reform (n)
8. Real estate tax (n)
a) A tax paid on land or buildings that you own.
b) A change made to improve a system, such as laws or taxes.
c) A cash payment to parents when a child is born.
d) A large number of people leaving a place.
e) Strict government spending cuts to fix economic problems.
f) The number of children needed to keep a population the same size.
g) The ability of people to have children; birth rate.
h) Something that encourages a person to take action.
Discussion
- How many brothers or sisters do you have? Is it more or less than your parents have?
- Several countries around the world have low birth rates. Why are people deciding to have fewer children?
- Does your country pay a baby bonus to couples when they have children? Is this kind of policy a good idea?
- How serious are the problems that Greece is facing? Do you agree that they are a "national threat"?
- Do you think tax cuts will help to raise the number of births? Explain.
- How does a low fertility rate affect schools, hospitals, and pensions?
- Do you think housing costs change people’s decisions about having children?
- Until what age do people usually live with their parents in your country?
- Would you consider living in the countryside to save money? Why or why not?
- A lot of young people left Greece for economic reasons. How can Greece encourage them to come back?
Answers
Listening:
- 2026
- baby bonus
- countryside
- fertility
- incentives
- 700
Comprehension:
- True. The article says the plan will start in 2026.
- False. Fertility is 1.4, which is below the 2.1 replacement rate.
- True. The article says more than 500,000 people left to find jobs.
- False. The plan gives a zero tax rate for low-income families with four children.
Vocabulary:
- Incentive (n): Something that encourages a person to take action.
- Fertility (n): The ability of people to have children; birth rate.
- Replacement rate (n): The number of children needed to keep a population the same size.
- Austerity (n): Strict government spending cuts to fix economic problems.
- Exodus (n): A large number of people leaving a place.
- Baby bonus (n): A cash payment to parents when a child is born.
- Reform (n): A change made to improve a system, such as laws or taxes.
- Real estate tax (n): A tax paid on land or buildings that you own.