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Croatia Unveils €685m Plan to Combat Demographic Crisis

Croatian Prime Minister Andrej Plenkovic on Thursday announced a €685 million ($720 million) initiative to tackle the country’s ageing population, declining birth rates, and the mass emigration of its citizens.

Experts have long warned that Croatia, a European Union member with a population of 3.8 million, is on the brink of a demographic crisis, with a shrinking workforce and fewer births recorded annually.

“Figures show that the situation requires decisive measures… that will boost birth rates and enable the return of our emigrants,” Plenkovic said during the unveiling of the measures, emphasizing that addressing the issue is now a national priority.

The new measures, set to roll out in March 2025, focus on supporting parents and families.

“The family is a nucleus of Croatia’s society, and we want… to improve the position of mothers and fathers,” Plenkovic stressed.

Key provisions include:

Tripling maternity allowances, raising the cap from €998 to nearly €3,000.

Doubling one-off allowances for newborns to more than €600.

Doubling paternity leave from 10 to 20 days.

Croatia’s birth rates have been in free fall for decades. In 2023, the country recorded 32,170 births, the lowest figure since 1991, compared to 55,000 in 1997 during the post-war baby boom.

This downward trend persists despite a slightly higher live birth rate of 1.53 children per woman in 2022 compared to the EU average of 1.46.

Since joining the EU in 2013, Croatia’s population has decreased by nearly 10%, falling from just over four million.

The United Nations projects this figure could drop to 2.5 million by 2100.

An estimated 400,000 Croatians have emigrated since 2013, citing better job opportunities and higher wages abroad, alongside dissatisfaction with corruption and nepotism at home.

In 2022, Zagreb attempted to reverse the brain drain by offering expatriates up to €26,000 to return and start businesses. However, only 700 people have taken advantage of the program so far.

Plenkovic’s administration hopes these new measures will provide a turning point.