Holiday debate: Shorter or more work for economic recovery?

Holiday debate: Shorter or more work for economic recovery?

Michael Hüther, director of the German Economic Institute (IW Cologne), has made a proposal to abolish a public holiday in Germany in order to ensure the short-term strengthening of the economy. The economist argues that abolishing a public holiday could increase gross domestic product by up to 8.6 billion euros. This assessment is based on calculations by his institute that highlight the benefits of an additional working day. However, according to Hüther, current tax estimates have shown that Germany will collect less taxes than expected. This limits the financial flexibility of the federal, state and local governments and increases the relevance of his proposal to support the economy.

The proposal also responds to a request from the Bavarian Business Association to delete a church holiday. There have already been similar discussions in the past, such as the abolition of the day of repentance and prayer as a public holiday in 1995. However, the debate is not without controversy. Marcel Fratzscher, head of the German Institute for Economic Research (DIW Berlin), contradicted Hüther's argument and emphasized that the labor shortage cannot be solved by canceling public holidays.

Economic framework conditions

The economic forecasts for Germany were recently lowered by the Ifo Institute and the OECD. The reasons for this are stressful trade conflicts and weak consumption, which are putting a greater strain on the economic situation than expected. These circumstances have given new fire to the discussion about abolishing a holiday to increase economic performance.

Hüther emphasizes the need for measures to increase economic performance in the short term. Fratzscher, on the other hand, sees the solution to the problem in reducing barriers to employment for women, refugees and other people from abroad. In his opinion, the focus on working-age population groups could have a more lasting effect on the economy.

Political reactions

The reactions to Hüther's suggestion are mixed. Representatives of the SPD and the Left reject the idea of ​​abolishing public holidays. Armand Zorn, deputy parliamentary group leader of the SPD, emphasized that public holidays promote the recovery and performance of employees. Jörg Cezanne, a member of the Bundestag for the Left, describes the proposal as outdated and not solution-oriented.

In contrast, Leif-Erik Holm, economic policy spokesman for the AfD parliamentary group, expressed his joy that no additional holidays should be introduced. These different political stances make it clear that the issue of holiday abolition and its impact on the economy and society remains highly contested.

Overall, the discussion about the abolition of a public holiday shows how closely economic considerations and social values ​​are interlinked. A uniform solution seems to be difficult to find in the current situation.