Economic Experts Open to Discuss Cuts to Public Holidays
Berlin, Germany – Amid the ongoing economic challenges, top economic experts in Germany have expressed a willingness to consider proposals to reduce the number of public holidays. Monika Schnitzer, a prominent economist, has voiced her support for the idea, suggesting that it could be a viable option if implemented in a broader context.
Schnitzer, the chief economist of the ifo Institute, believes that the country’s recent experiences with one crisis after another have led to a culture of caution, preventing policymakers from making tough decisions. “I think what we’ve seen in the last few years is a crisis after a crisis and we haven’t been brave enough to say, ‘This is the cost and it’s affecting everyone'” she said.
The proposal to eliminate a public holiday has been a topic of debate for years, with some arguing that the additional workday would boost the economy. According to calculations by the Institute of the German Economy (IW), an extra workday could add between five and 8.6 billion euros to the country’s gross domestic product (GDP), representing a 0.2% increase in economic output.
Veronika Grimm, another prominent economist, also endorsed the idea, describing it as “right.” While Schnitzer emphasized that the proposal should not be seen as a simple call for employees to work an extra day, but rather as part of a broader package of reforms, including changes to the pension system and a later retirement age.
Schnitzer believes that by combining these topics, a societal acceptance of the proposal could be achieved. “In that sense, I understand the proposal to eliminate a public holiday” she said.
The debate surrounding the proposal highlights the ongoing challenges facing Germany’s economy and the need for policymakers to consider unconventional solutions to address the country’s fiscal and demographic issues.