Dispute over holiday cancellation: 8 billion euros for the economy?

Dispute over holiday cancellation: 8 billion euros for the economy?

In the midst of an ongoing debate about strengthening the German economy, this calls for ifo Institute again the cancellation of a public holiday. Clemens Fuest, President of the Institute, emphasizes that this could be a useful measure to financially support both defense and infrastructure projects.

According to estimates, this could lead to an annual increase in gross domestic product (GDP) of around 8 billion euros. Fuest emphasizes that the abolition of a public holiday alone will not solve the complex problem of a shortage of skilled workers. However, no concrete suggestions have been made yet as to which public holiday could be canceled.

Economic considerations and examples

The discussion about the impact of the holiday cancellation is attracting widespread attention. Economists argue that an extra day of work could represent a conflict between workers in need of rest and economic reality. Calculations of the Institute of German Economy (IW) show that such a step could increase economic output by up to 8.6 billion euros. Two methodological approaches underline these calculations: on the one hand, the calendar adjustment, which determines a good five billion euros in additional economic output, and on the other hand, the resulting increases from increases in production and cost reductions.

The example of Denmark is often cited, where a public holiday was canceled to finance defense spending. This shows how national economic cuts can affect different areas. Monika Schnitzer, a prominent economist, supports this idea and sees the cancellation of a public holiday as a solution to financing crisis burdens and public investments in an increasingly dilapidated infrastructure.

Criticism of the holiday cancellation

But the initiative also has its opponents. The Catholic Church expressed its rejection of the proposal through Bishop Heiner Wilmer and Auxiliary Bishop Anton LosingerGerman Trade Union Confederationargues that holidays are important for employee recovery and productivity. The complexity of implementation is also reflected in the different holiday regulations in the individual federal states, which makes uniform regulations even more difficult.

Demographic developments also play a role, as more employees are retiring than are joining. This is developing into the background of an intensifying discussion about how the German economy can be sustainably stabilized.

The ongoing debate could have far-reaching consequences, both for employees and for Germany's economic structure. Whether the idea of ​​eliminating a holiday will ultimately be implemented remains to be seen, but it has already sparked significant dialogue about the balance between work time and rest.