Ditching a Day Off: Ifo President's Reapeated Plea for Holiday Cancellation to Boost Economy
President advocates for scrapping vacation plans
On the bustling digital landscape, discussions are underway once more regarding the cancellation of a public holiday, as proposed by Clemens Fuest, the head of the esteemed Ifo Institute situated in Munich. Fuest emphasized on Friday that such a move would allow for renewed focus on defense and infrastructure initiatives.
" with a shrinking workforce, such expenditure programs will inevitably lead to delayed implementation of projects and a diversion of labor from other essential areas," Fuest explained in a robust statement.
In reality, mere financial resources are insufficient to construct roads and bridges, he argued. What's required is an expansion of the workforce as well. The potential cancellation of a holiday merely serves to augment economic output by approximately eight billion euros per annum, Fuest reasoned without suggesting which particular holiday could be axed.
This argument has been circulating for weeks now, with Fuest already suggesting such a measure in an interview with the "Frankfurter Allgemeine Zeitung" in March. His proposal aimed to shape the debt brake and the new infrastructure fund[1]. Economist Monika Schnitzer echoed his thoughts in "Der Spiegel" at the same time.
In addition to these deliberations, the Institute of the German Economy (IW) approximated that an extra workday could swell gross domestic product by between five and 8.6 billion euros, contingent on the method of computation used[1].
Yet, as of yet, there is no specific evidence that such a proposal for the abolition of public holidays to increase economic productivity and fund defense and infrastructure projects is underway or coming into focus in the current discourse. With sweeping economic and political changes ongoing in Germany, such as the recent coalition agreement focusing on economic measures and legal reforms, such a proposal might be incorporated within broader discussions[2].
In the meantime, Germany celebrates several public holidays, including the Easter period, although no indications have emerged regarding a focus on this holiday for possible cancellation[3]. Berlin is also commemorating a new public holiday on May 8, 2025, to mark the end of World War II in Europe[3].
[1] ntv.de, AFP[2] npr.org, The Local[3] berlin.de
- Clemens Fuest, the Ifo Institute president, reiterated his call for canceling a public holiday to finance defense and infrastructure projects, arguing that it could boost the economy by approximately eight billion euros per year.
- Economist Monika Schnitzer echoed Fuest's sentiments, suggesting that abolishing public holidays could lead to economic growth and help shape the debt brake and new infrastructure fund.
- The Institute of the German Economy (IW) estimated that an additional workday could increase gross domestic product by between five and 8.6 billion euros, contingent upon the computation method used.
- With ongoing sweeping economic and political changes in Germany, such as the recent coalition agreement focusing on economic measures and legal reforms, a proposal for the abolition of public holidays might be considered within broader discussions.
