Along with the green transition, digitalization and the fourth industrial revolution, the issue of demographic renewal is currently one of the biggest challenges in Europe. The inevitable population aging and low and stagnant fertility rates in most European countries call into question the sustainability of the current concept of the welfare state, while a reduced working age population both affects the labor market and threatens long-term economic growth. In addition, newer Eastern European member states are witnessing both depopulation processes and the migration of a large number of their citizens to western EU members. All of the abovementioned further emphasizes how important it is in the long run to explore a comprehensive demographic policy aimed at fertility increase. This paper therefore analyses various approaches that are at the very heart of the pro-natalist policy in the EU and that includes tax incentives in the income tax system, value-added tax and direct cash transfers such as child allowance and one-off cash benefits (so-called Baby bonus) for newborns. Furthermore, options such as parental leave schemes and closely related early childhood education and care systems (ECEC), which are proven to be particularly important for achieving work-life balance, are analyzed separately. The purpose of this paper is to present the measures used to encourage and support parenthood in the European Union, based on European and other international databases and research, with special reference to the models in three countries (Sweden, Germany and Croatia). The relationship between the approach to the pro-natalist policy and its relative success in maintaining or increasing fertility, i.e. the number of newborns, is made on the basis of the patterns observed in the implementation of such measures. Their significance, generosity, and long-term sustainability are also evaluated. The conclusion of this paper provides a brief discussion on the demographic outlook for the European Union, with emphasis placed on the importance of adopting and applying proven best practices of the pro-natalist policy aimed at fertility increase. It also analyses the necessity of exploring possible changes in the concept of the welfare state and/or, as an alternative, a more pronounced orientation towards a carefully designed immigration policy.