Southern and central European nations are grappling with a significant brain drain as young workers migrate northward in search of higher wages, better career opportunities, and improved social benefits. Portugal, facing a severe labor shortage and a declining economy, has proposed tax breaks and housing subsidies to entice young professionals to remain in the country. The new policy aims to support up to 400,000 individuals under 35, but skepticism remains about its effectiveness, as high living costs and limited career growth continue to drive Portuguese workers abroad. Meanwhile, countries like Italy have tried similar schemes with mixed results.
This exodus is driven by a substantial wage gap and a desire for better working conditions, impacting not only southern and central Europe’s economy but the EU’s broader economic goals amid an aging population and declining productivity.
