Croatia’s Prime Minister Andrej Plenkovic unveiled a massive €685 million ($720 million) package on Thursday aimed at tackling the country’s demographic crisis. The measures focus on increasing birth rates, encouraging families, and curbing the ongoing exodus of young people.
In a press conference, Plenkovic acknowledged the urgent need for action. “Figures show that the situation requires decisive measures… that will boost birth rates and enable the return of our emigrants,” he said.
The prime minister emphasized that the new strategy would make population growth and family support a “strategic” priority for the Croatian government. “The family is the nucleus of Croatia’s society, and we want to improve the position of mothers and fathers,” Plenkovic added.
The plan includes a series of measures designed to directly assist parents. Starting in March 2025, maternity allowances will be tripled from the current €998, giving families more financial support. A one-off allowance for newborns will also double to over €600. Furthermore, the government will extend paternity leave from 10 to 20 days.
Croatia, a European Union member state with a population of just 3.8 million, is facing a rapidly aging population. Experts warn that unless action is taken, the country will experience a demographic collapse. In 2023, the number of births fell to just 32,170, the lowest number since 1991, a sharp decline from the 55,000 born in 1997.
The population has dropped by nearly 10 percent since Croatia joined the EU in 2013. By 2100, the United Nations predicts the country will have just 2.5 million residents.
Plenkovic’s €685 million plan is a direct response to these demographic challenges. It aims to provide families with more financial security, thus encouraging them to have more children. The move also seeks to bring back Croatians who have moved abroad in search of better job opportunities.
Demographers have been sounding the alarm about Croatia’s shrinking population for years. The country’s live birth rate, at 1.53 children per woman in 2022, is still slightly higher than the EU average of 1.46. However, experts fear that this modest difference is not enough to stop the country’s demographic decline.
Dr. Iva Štefančić, a Croatian demographer, explained the urgency of the situation. “Croatia’s population is rapidly aging. With fewer children being born and more people leaving for better opportunities abroad, we are facing a serious crisis. The country’s economic future will be affected unless these trends are reversed.”
The government has also tried other measures to address the crisis, including offering financial incentives for Croatian expatriates to return. In 2022, the government promised up to €26,000 for citizens returning to start a business. Unfortunately, the program yielded modest results, with only around 700 people returning so far.
Many Croatians who left the country cite better job opportunities and higher wages abroad as the primary reason for their decision to emigrate. A number also point to issues such as corruption and nepotism at home, which they say have made it difficult to advance in the local job market.
The aging population is also taking a toll on Croatia’s workforce. With fewer young people entering the job market, the country is struggling to maintain a robust economy. Experts warn that the shrinking workforce could lead to higher taxes for fewer workers, placing additional pressure on social services and pension systems.
In an effort to counter this, the Croatian government is focusing heavily on family support and incentives to increase birth rates. The new measures are part of a broader strategy to create a more family-friendly society. With the higher maternity allowances, extended paternity leave, and other financial benefits, the government hopes to provide the necessary support for families to grow.
The success of Croatia’s new plan will depend largely on whether the country can provide lasting incentives for both families and returning emigrants. Prime Minister Plenkovic has made it clear that this is just the beginning of a long-term strategy.
“We are not looking at these measures as a short-term solution. This is about creating a sustainable future for Croatia,” he said.
However, the implementation of such a large-scale program comes with challenges. Critics argue that while the financial incentives are helpful, they do not address the root causes of emigration or the issues driving low birth rates, such as housing affordability, job security, and healthcare.