Faced with one of Europe's lowest birth rates and a growing elderly population, the Spanish government on Friday approved a plan to give €2,500, or almost $3,500, to the parents of each newborn or adopted child.

The Spanish birth rate has plunged over the past 20 years as young Spaniards opted to have fewer children and began families later in life, partly, some sociologists say, because high housing prices keep many at home until their early 30s.

A recent influx of immigrants has helped bolster the birth rate, but Spain still has one of the lowest in Europe, according to the Organization for Economic Cooperation and Development: 1.36 births for each woman of childbearing age. It is also on track to have one of Europe's oldest populations, according to the organization, which predicts that by 2050 there will be three people over 65 in Spain for every four between 20 and 64, compared to a 1-to-4 ratio in 2000.

http://iht.com/articles/2007/07/13/news/spain.php