The Premier of the German state of Saxony, Michael Kretschmer, is advocating for a significant shift in national economic policy aimed at bolstering growth.
In comments published over the weekend, Kretschmer emphasized the need for “deregulation and a reduction of state intervention, particularly within the economic sphere”. He asserted that Europe and Germany specifically, should function as a “space of freedom, not regulation.
Kretschmer further proposed adjustments to existing labor laws, suggesting a review of regulations governing part-time employment and temporary contracts, with the aim of streamlining them to a “bare minimum”. He believes a simplification of these rules would contribute to greater economic flexibility.
Additionally, the Premier indicated a desire to address the prevalence of short-term sick leave. Germany, he noted, consistently ranks among the highest in Europe for the number of sick days taken. While supporting full pay for those genuinely ill requiring recuperation, Kretschmer proposed introducing a waiting period – a “karenz day” – before sick pay is issued, effectively eliminating wage continuation for single-day absences. This, he argues, could discourage unnecessary sick leave and improve overall productivity.