Spanish Prime Minister Jose Luis Rodriguez Zapatero promised on Tuesday that every child born in Spain would receive a baby bonus of €2,500, according to national press reports.

It was only last month that Australian Treasurer peter Costello announced with much satisfaction that the maternity windfall introduced in July 2004, which signified 3,000 Australian dollars (2,300 American dollars) per baby, led to a 1.4 annual increase in the Australian population.

On Tuesday, Spain’s Prime Minister told parliament in his state of the nation address that the country needs to raise its birth rate and that the baby bonus would be a good incentive. “Spain, in order to keep advancing, needs more families with more children,” Zapatero said.

“Each family living legally in Spain will receive 2,500 euros from today for every new child born in our country. To continue to progress Spain needs more families with more children and families need support to have these children and resources to raise them,” he said.

The bonus ($3,980) will be given to all newborns, including those of legal immigrants, no matter what income the family has, Zapatero said.

Spain’s current birth rate is of 1.37 children per woman, one of the lowest in the world.

Other European countries have adopted financial policies as well, in an aim to encourage women to have more children.