In the country famous for its family culture, fewer children are being born than ever before. Now Italy is trying to reverse the trend with cash.
12 deaths for every 7 births
The numbers are stark. In 2024, just 379,000 children were born in Italy — down from nearly 577,000 in 2008. The birth rate has fallen to 1.18 children per woman, among the lowest in the world. For every 7 babies born, 12 Italians die. The population is shrinking rapidly.
At the same time, Italy has one of Europe's oldest populations. Fifty years ago, there was one person over 65 for every child under 6. Today the ratio is 5.6 to 1.
Italy's new baby package
In 2025, the Italian government introduced a range of measures to encourage Italians to have children:
- Birth bonus: €1,000 to all families with income below €40,000 per year for each child born
- Mothers' bonus: Tax relief for mothers with two or more children, extended to self-employed workers
- Childcare bonus: Extended childcare subsidies, now available to all families regardless of number of children
- Parental leave: Three months at 80% pay (up from two months)
Together, Italy is spending several hundred million euros annually on these measures.
But does it work?
This is the big question. Research referenced by the Financial Times shows there is almost no correlation between a country's spending on family policy and the number of children born. Hungary spends over 5% of GDP on family support — more than any other country — but the birth rate is still far below what is needed to sustain the population.
Experts point out that the real barriers are cultural: expensive housing, unstable employment situations for young adults, and a culture in which having children is increasingly seen as something you do when everything else is in place — education, career, home, partner.
The broader picture
Most developed nations are grappling with declining birth rates. Generous financial incentives alone do not appear to solve the problem. Countries that have maintained higher birth rates — like France and the Nordic nations — tend to combine financial support with deeply embedded cultural attitudes that view parenthood as compatible with, rather than an obstacle to, career and personal goals.
Further reading
- France: Europe's birth rate champion — what are they doing right?
- South Korea: Birth rates rise for the first time in 15 years
- Hungary: Tax exemptions for mothers — does it work?