Greece announces state-matched investment account for children

Prime Minister Kyriakos Mitsotakis has announced a new demographic policy measure called the ‘Koumparas for the New Generation’ (Piggy Bank for the New Generation). This initiative involves a specialized investment account for children, which parents can open within the first two years of a child's life.

The program operates on a matching principle: for every euro deposited by parents, the state will contribute an equal amount, up to an initial annual limit of 1,200 euros. This limit is set to increase by 10% every five years. Funds are intended to be invested in products such as mutual funds or bonds and remain locked until the child reaches age 18.

Depending on investment returns, the account could grow significantly. While the base contributions from parents and the state might total approximately 49,304 euros over 18 years, annual returns of 3% to 5% could push the final capital to between 64,109 and 77,062 euros. Some projections suggest higher potential totals. The measure is expected to be implemented starting in 2027.

In related political developments at the Thessaloniki Economic Forum (DETh), Mitsotakis addressed his ambitions for a third term while remaining vague on potential coalition scenarios if his party, New Democracy, fails to secure a majority. Public reaction to the new economic measures has been mixed, with some citizens expressing skepticism regarding their impact on the cost of living.