Abolition of Whit Monday: Economy benefits, politics divided!

Abolition of Whit Monday: Economy benefits, politics divided!

There is currently discussion in Germany about abolishing a public holiday, particularly Whit Monday. This debate is controversial among experts and political actors and has far-reaching effects on the national economy. Economist Hüther from the German Economic Institute (IW) highlights that the abolition of a public holiday could increase the gross domestic product (GDP) by up to 8.6 billion euros. This could effectively improve economic performance and create an additional working day that could amount to up to 0.2 percent of GDP, like daily news reported.

However, Christoph Schröder, an IW expert, warns of the demographic challenges that could dampen economic performance, as there are more people retiring than new employees. He emphasizes the need to strengthen the volume of work to meet the challenges of the skills shortage.

Political reactions and opinions

Political reactions to this proposal are mixed. The SPD and the Left have clearly spoken out against the cancellation of a public holiday because they emphasize the importance of public holidays for relaxation and productivity. The left sees the idea as outdated and ineffective. In the AfD, on the other hand, there are divided opinions: While the Bundestag faction does not consider additional public holidays to be economically viable, the state parliament faction in Baden-Württemberg demands that diets should be canceled instead.

Additional voices from business support the proposal. Monika Schnitzer, the head of the economists, sees the possibility of abolishing a public holiday as an opportunity to finance the burden of the crisis. As an example, reference is made to Denmark, where similar solutions have been successfully implemented. Clemens Fuest, President of the Ifo Institute, is also in favor of canceling a public holiday in order to counteract the labor shortage. However, the DGB (German Trade Union Confederation) rejects the proposal because public holidays are important for relaxation and productivity.

Economic calculations in detail

The considerations for canceling a public holiday are based on different calculation approaches. A calendar adjustment brought a good five billion euros in additional economic output, while two scenarios from the Advisory Council, which look at an increase in production or a reduction in costs, also show similar results in terms of economic efficiency. It turns out that the effects vary depending on the season of the holiday being canceled. A summer or winter festival could have various economic effects that need to be taken into account.

In summary, the discussion about abolishing a holiday has far-reaching economic and social implications. The opinions and approaches are diverse and reflect the different interests of experts and political actors. While some see abolition as the solution to economic challenges, others warn of the expected consequences for society.