Germany Considers Abolishing Public Holiday to Boost Economy by Up to €8.6 Billion

Inspired by Denmark's example, the proposal faces logistical and symbolic challenges within Germany's federal structure.

The Institute of the German Economy (IW) estimates abolishing a public holiday could increase Germany's GDP by 5 to 8.6 billion euros annually.
Economist Monika Schnitzer proposed the measure, citing Denmark's recent decision to remove a holiday to fund defense spending.
The IW's analysis highlights the economic impact depends on the season and sector, as productivity varies significantly between summer and winter.
Germany's aging workforce and demographic challenges are driving discussions about increasing work hours rather than reducing them.
Implementing the proposal is complicated due to Germany's federal system, where holiday regulations vary across states.