Bavaria's economy screams: fewer holidays for more growth!

Bavaria's economy screams: fewer holidays for more growth!

The debate about the number of public holidays in Germany is gaining momentum. In a current report, the Bavarian Business Association (vbw) calls for the cancellation of church holidays in order to improve the economic situation in the country. President Wolfram Hatz said: “We need more work, fewer holidays”. This reflects the pressure on the German economy, particularly given the weakening economic situation.

The managing director of vbw, Bertram Brossardt, named specific holidays such as Easter Monday, Whit Monday and Boxing Day as potential candidates for cancellation. He argues that canceling a public holiday would benefit the German economy without placing a heavy burden on workers. In international comparison, Germany has the most public holidays in Europe and the shortest annual working hours worldwide, which is fueling the discussion about working time adjustments

Economic impact of holiday cancellation

According to calculations by the German Economic Institute (IW), the cancellation of a public holiday could increase the gross domestic product (GDP) by up to 8.6 billion euros. An additional working day could amount to up to 0.2 percent of GDP. Two different calculation approaches, one of which involves so-called calendar adjustment, show that an additional working day could increase economic output by a good five billion euros. In addition, scenarios for an increase in production and a reduction in costs could lead to similar results, as IW expert Christoph Schröder emphasizes.

However, the discussion is complex, especially since the holiday regulations differ in the federal states. While Schleswig-Holstein, Hamburg, Bremen, Lower Saxony, Berlin and Hesse have the fewest with ten public holidays, Saarland, Baden-Württemberg and Bavaria are among the countries with the most with up to 14 public holidays. Brossardt describes Whit Monday as the holiday that could most easily be dispensed with. A uniform deletion would have to take place across Germany.

Conflicting opinions on the topic of holiday cancellation

However, the demand for deletion is also met with resistance. Bavaria's Prime Minister Markus Söder (CSU) has clearly spoken out against a reduction in public holidays. The German Federation of Trade Unions (DGB) also rejects the proposal and emphasizes that public holidays are important for relaxation and productivity.

However, the economic necessity of such a measure is supported by some prominent business representatives. Monika Schnitzer, head of the economists, sees abolishing a public holiday as a way to finance the burden of the crisis. Clemens Fuest, President of the Ifo Institute, also advocates for the cancellation of a public holiday in order to counteract the labor shortage.

Overall, it turns out that the topic of holiday cancellations is a complex and controversial area that has both economic and social implications. The challenges of the German economy and demographic trends, with more people retiring than new employees, are increasing the discussion about the future of the holidays in the country.

For more information on this topic, read the reports on RND and daily news.