OECD identifies gaps in Greek family support and child benefits

The OECD has identified significant deficiencies in Greece's system of tax and welfare benefits for families with children, noting that the current support lags behind other European nations. In a recent report, the organization emphasized that while family benefits are crucial for reducing poverty and supporting child development, the existing structure in Greece is uneven.

Specifically, the OECD noted that support for a third child is double the amount provided for each of the first two children, a logic it describes as unclear given Greece's low fertility rate of 1.2 children per woman. To address these issues, the OECD proposed two alternative scenarios of equal fiscal cost: a 30% increase in child allowances, which would primarily benefit low-income households, or a 76% increase in child tax credits, which would favor middle-income families.

These findings coincide with the Greek government's upcoming Economic Forecast and the National Action Plan for Demographics 2025–2035, potentially paving the way for a new package of family benefits to combat the country's demographic challenges.