Debate about public holidays: Does this make it more difficult to save the economy?

Debate about public holidays: Does this make it more difficult to save the economy?

In the current debate about the economic situation in Germany, the focus is often on employees, who are sometimes described as “lazy”. Marcel Fratzscher from the German Institute for Economic Research (DIW) sharply criticizes this one-sided focus. He calls for a more comprehensive view that also takes into account the share of companies in the economic situation. He also emphasizes that productivity in Germany has not increased significantly in the last 20 years. This is an indication that the way we work needs to be reconsidered: “Working smarter” should be the goal instead of just working more, explains Fratzscher.

He also criticizes the fact that many companies have lost touch when it comes to digitalization. In this context, Oliver Holtemöller warns that the debate about holidays such as Whit Monday acts more as a political distraction. He sees stagnating productivity as a European problem that does not only affect Germany. Holtemöller points to the challenges that the German auto industry in particular is facing and doubts that canceling a public holiday would actually improve the economic situation.

Challenges of the automotive industry

The German and European automotive industry faces a number of challenges. According to a report on the European automotive industry, the sector is struggling with low productivity, a lack of digitalization and insufficient investment. Compared to the USA and China, the European economy is increasingly falling behind. In this context, Stefan Randak, partner at Atreus, outlines a growth agenda for the industry. Central to automobile manufacturers is the transformation from combustion engines to e-mobility and other types of drive.

Another problem is the dependency in cell and battery production as well as deficits in the development of software, car connectivity and autonomous driving. In addition, German manufacturers are increasingly losing sales and market shares in China, which further endangers the global hegemony of European-based companies. Against this background, a significant reduction in production costs in Germany is considered necessary.

In the context of these explosive challenges, it is clear that the discussion about holidays and employee productivity definitely has a larger context. It is obvious that both political decisions and economic circumstances influence the current state of the German economy. Without sustainable reforms and a rethinking of the way we work, the situation, as Fratzscher and Holtemöller note, will not improve.

Further details on the current adaptation of the European automotive industry and its challenges can be found in the report automobile-industrie.vogel.de and to the debate about holidays in the article by mdr.de.