Abolition of a Public Holiday for More Work

In Germany, people should work more as a whole and one public holiday should be abolished, says ifo President Clemens Fuest. This move is necessary to enable new efforts to improve defense and infrastructure. “Unless more labor is available than before, the investments will be delayed and workers will migrate from other sectors, where shortages will arise,” says Fuest.

Although financing public programs through loans secures investments in defense and infrastructure, there is a risk of bottlenecks: "More money alone doesn’t build roads and bridges – additional workers are needed as well." He emphasizes that giving up a public holiday alone would not solve the problem, but would have a measurable effect: Economic output would increase by around EUR 8 billion a year. Other options such as more training and private investment are also important – but in view of the shortage of skilled workers, all potential must be utilized.