Greece Plans State-Funded Savings Accounts for Children

A state-funded savings account for every child is expected to be one of the headline measures in a broad Greek package of benefits and tax relief. The prime minister is due to present the package this evening, with its total value potentially exceeding 2.5 billion euros.

Under the proposed child savings model, the state would deposit a set amount each month into an individual savings or investment account for every child up to age 18. The aim is to give children an initial capital base that they could use later in life, while encouraging a culture of saving and investment from an early age.

The proposal draws on Germany’s Frühstart-Rente as a possible reference model. Under that system, the state plans to pay 10 euros a month into an individual pension or investment account for each child from age 6 to 18. The money would not function as an allowance for immediate spending, but as long-term property for the child. Investment returns and optional family contributions could increase the initial amount.

The package is also expected to target farmers, families with three or more children, pensioners and public employees. Farmers could receive a higher tax-free threshold, reducing their tax burden and raising disposable income. Support for larger families would form part of the government’s response to demographic concerns.

For pensioners, the payment made each November is expected to rise from about 300 euros to 450 euros. The plans also reportedly include a new increase in the minimum wage and significant tax changes affecting self-employed people and businesses.