Bank of Greece Warns of Demographic Risks, Calls for Interventions

The Bank of Greece (ΤτΕ) warns that the demographic problem poses a serious medium-term fiscal risk for the country, according to the Financial Stability Report presented by the Governor of the Bank of Greece, Yannis Stournaras.

The report highlights that the aging population and the decline in births affect employment, tax revenues, and the sustainability of the social security system.

It states that the tax measures announced at the Thessaloniki International Fair (DETH) 2025 aim to strengthen household disposable income and address the demographic issue by supporting families with children.

Mr. Stournaras emphasizes that tax interventions are not enough and complementary policies are needed, such as investments in kindergartens, flexible working hours, housing support, improved healthcare, and special allowances.

The Bank of Greece stresses that the combination of tax and structural measures can enhance the benefits for the economy, contributing to social cohesion and fiscal resilience.

In addition, the report states that attracting productive investments requires a stable business environment, digitization of services, reduction of bureaucracy, and strengthening the protection of property rights.