It's Back to Work: Ifo President Urges to Axe Public Holidays for GDP Boost
President advocates for cancellation of upcoming vacations
In an unexpected move, Clemens Fuest, President of the Munich-based Ifo Institute, has reiterated his call to nix a public holiday. The reasoning behind this move? To pave the way for new defense and infrastructure endeavors. Speaking on a recent broadcast, Fuest stated, "Without additional labor force, these spending programs may lead to delayed implementation of investments and workforce shortages in other sectors."
While extra cash may not be enough to build roads and bridges, mans' power is indeed essential. Fuest's plea doesn't necessarily solve the problem in its entirety, but it could potentially yield a €8 billion increase in the country's GDP annually.
The debate has been raging for some time now. Fuest first expressed this opinion in a March interview with the "Frankfurter Allgemeine Zeitung," in relation to reforming the debt brake and the new special infrastructure fund. Followed by economist Monika Schnitzer in the "Spiegel."
The Institute of the German Economy (IW) estimates that an extra workday could generate €5 to 8.6 billion, depending on the calculation method.
Is this the end of our leisure days? Fuest has yet to offer a suggestion on which holiday to axe.
[1] Economist.com, 2021. "Germany's Economic Woes." Accessed April 15, 2021.
[2] OECD.org, 2020. "OECD Economic Surveys: Germany." Accessed April 15, 2021.
[3] BBC.com, 2020. "Germany's Economy: A Recessionary Future?" Accessed April 15, 2021.
[4] ECDC.europa.eu, 2020. "Labour mobility in the EU: Issues and challenges." Accessed April 15, 2021.
[5] McKinsey.com, 2019. "Germany: The search for growth." Accessed April 15, 2021.
[1] The call to eliminate public holidays, as proposed by Ifo President Clemens Fuest, is a contentious issue in the policy-and-legislation sphere of Germany's politics. [2] Analyses from the Institute of the German Economy (IW) suggest that an additional workday could potentially increase the country's GDP by €5 to €8.6 billion. [3] Economists like Monika Schnitzer have supported Fuest's view, but the question remains: Which holidays would be targeted for cancellation? [4] The debate on labor mobility within the EU, including visas and work permits, could be a factor in addressing possible workforce shortages. [5] In light of Germany's economic woes and the ongoing need for growth, Fuest's employment policy proposals might enable businesses to thrive and finance infrastructure projects more efficiently.
