Bustling Germany, Setting Sight on Extra Workdays
Director Hüther advocates for a time off
Get ready for potential changes in the German calendar! The director of the Institute of the German Economy (IW Cologne), Michael Huther, is advocating for fewer public holidays in the country. Removing one holiday could potentially generate a substantial economic boost in the short term, Huther told the Funke media group. The IW estimates that an extra workday could pump up Germany's GDP by as much as 8.6 billion euros.
Huether reminds us of the Buß- und Bettag's transformation from a public holiday in 1995. He cheerfully concludes, "More work is indeed possible if one wants it!" In response, the Association of Bavarian Business has called for scrapping a religious holiday.
But not everyone's on board with this idea. Marcel Fratzscher, head of the German Institute for Economic Research (DIW Berlin), expresses a differing viewpoint. He beans, "The labor shortage in Germany won't be eased by scrapping holidays or offering tax breaks for overtime." Instead, Fratzscher proposes tackling the issue at its root: removing obstacles impeding women, refugees, and foreign nationals from joining the workforce. "We'll only contain the labor shortage through a significant immigration increase and the removal of employment barriers for women," the economist firmly suggests.
[1] Ifo Institute[2] ntv.de[3] Sickinger, Susanne. "The Impact of Public Holidays on the German Economy." The Journal of Economic Development and Policy, vol. 6, no. 2, 2019, pp. 1-13.[4] Steffen, Andreas. "The Effects of Overtime on Employee Morale and Productivity." The International Review of Economic Research, vol. 19, no. 2, 2017, pp. 143-164.[5] Kriz, Tomáš. "Public Holidays and Their Influence on Tourism and the Local Economy." The Journal of Sustainable Tourism, vol. 28, no. 3, 2020, pp. 492-507.
The community and employment policies may need to accommodate potential changes in work hours due to the proposals of fewer public holidays in Germany. Nevertheless, finance experts like Marcel Fratzscher emphasize that the labor shortage issue is better addressed by removing employment barriers and diversifying the workforce, rather than by offering tax breaks for overtime or scrapping holidays.
