Difficulties and Possible Escapes from Centra Europe's Demographic Winter

Difficulties and Possible Escapes from Centra Europe's Demographic Winter Presented by: Prof. Dr. Tímea Dr. Barzó Date: 23 February 2024 Introduction – Structure Of The Presentation - Topics of the presentation: • Institutional and legal background of family policy of the Central European Countries • Classification of family policy measures • Tax and contribution benefits (summary table) • Classification of home creation program and the concrete measures of them • The work-life balance (summary table) • Generational policy (summary table) Institutional Background Of Family Policy Of The Central European Countries - - Romania • Ministry of Families Youth and Equal Opportunities • Ministry of Work and Social Solidarity • Ministry of Justice • Ministry of Education • Ministry of Health Serbia • - - Ministry of family care and demography Slovenia • Council for Children and the Family of the Republic of Slovenia • Housing Fund of the Republic of Slovenia • Ministry of Labor, Family, Social Affairs and Equal Opportunities Slovakia • Ministry of Labor, Social Affairs and Family of the Slovak Republic Country Czech Republic Croatia Hungary Poland Legal Background - Laws Legal Background Strategies Act on Labor Code; Act on A New Approach to Family Sickness Insurance; Act on Policy 2017 The New Family State Social Support; Act on Policy Strategy 2023-2030 Social and Legal Protection of Children, Act on Pension Insurance; Act on Income Tax Constitution; The Child April 2022-preparing the Allowance Act; The Labor Strategy for demographic Act; Free Legal Aid Act; revitalization of Croatia till Temporary Maintenance Act; 2031 National Development The Social Welfare Act Croatia 2030 strengthening of the family Fundamental Law of 2019 Family Action Plan Hungary; Act on the Protection of Families; Act on support for young people starting their lives; Act on Family Support; Act on the Labor Code; Act on Social Insurance Pension Benefit Constitution; Family and 2040 Demographic Strategy Guardianship Code; Act on Family 500+ program state assistance in the upbringing of the children; Act on family benefits; Act on the assistance of pregnant women and family support for life Systematic Classification Of The Family Policy Measures - Family support benefits - Tax and contribution benefits - Home Creation - Family and work allowances - Generational policy - Family-friendly provisions in the pension system - Social security institutions supporting families Schemes Of Family Friendly Taxation - Poland • - Czech Republic • - Family 500+ program: childbearing benefits through tax law Family tax allowances Croatia • Personal child tax allowance: The amount of the child tax allowance increases gradually for each additional child - - Slovenia • Child tax allowance: • Motor vehicle tax: Serbia • - Slovakia • - Exemption from income tax in line with family maintenance Tax bonus system Romania • Children and young people between the age of 18 and 26 years are exempted from health insurance contributions. - Hungary • Full personal income tax exemption for mothers of at least four children • Family taxation: large families should be taxed less • Tax allowance for first-time married couples Home Creation – Classification - Three main groups • Specific status of the family home is emphasized by private law rules, and THERE IS NO EXPLICIT DEMOGRAPHIC-ORIENTED HOME CREATION PROGRAMME (e.g. Romania, Czech Republic, Slovakia) • PUBLIC INSTRUMENTS TO PROMOTE HOME • CREATION, but these are mostly followed by collateral subsidies, as interest rates of loans and credits, or tax allowances (e.g. Serbia, Poland) • State-subsidized loans and direct state support • SPECIAL HOME CREATION PROGRAMMES (e.g. Hungary, Croatia, Slovenia) Home Creation Progammes Country Nature of the allowance Croatia Housing care program Slovenia National Housing Program 2015-2025 Hungary CSOK Village CSOK CSOK Plus Most important elements of the legal institution State contributes to the repayment of a part of a housing loan For the purchase of a house over a five-year period Large scale of beneficiaries, Renovation of the housing stock Building of new housing in areas Providing long-term loans with favorable interest rate Aid in the payment of loans Approximately € 26,146 if the pair have 3 or more children, or if they are planning to have 3 or more children if they are building or buying a new home Until two children it is a loan, after the third child it is a free state subsidy Most Important Elements Of The Legal Institution - Poland • Demographic Strategy 2040 - need for changes in labor law, with special regard to more flexible working - Romania • Flexible working time - work-from-home, flexible schedules, individual schedules, and part-time employment - Croatia • - Part-time work, breaks for breastfeeding Slovenia • The parents who have a child up to the age of three, has the right to work as a part-time employee - Hungary • - Serbia • - Family-friendly jobs; GYED EXTRA Individual companies based on their own internal rules Slovakia • Lack of real opportunities for part-time employment Most Important Elements Of Generational Policy - - Croatia • Intergenerational solidarity • Public law instruments • National Benefit for the Elderly Slovakia • - - Strategic Framework: intergenerational solidarity Serbia • Public law instruments • National youth strategy (2015-2025) • Youth strategy in the Republic of Serbia (2023-2030) • National Strategy on Aging (2006-2015) Slovenia • Public law instruments • WOMEN 40 • Grandmothers can have unlimited gainful employment in addition to their pension - Poland • - - Private law institutions: contracts Romania • Public law instruments • Law on Young People no. 350/2006 Hungary • Public law instruments • WOMEN 40 • Grandmothers can have unlimited gainful employment in addition to their pension Conclusion - There are family policy measures in the Central European countries - There has been an increase in fertility rates in the countries over the last decade - Several of the Central European countries have strong family policies - Number of childbirths does not depend on family policies alone - Geopolitics - negative events that have affected the incentives to childbearing - Sense of insecurity, energy crisis, economic crisis, existential and psychological effects - If there are no real family policies the demographic winter will be much longer and colder - Effects are not really visible yet, but they can be expected in the future - Family policy + geopolitical situation improves demographic winter hopefully turn to spring