logo

France's plan to cull public holidays may not help the economy

Zawya17-07-2025
FRANKFURT - The French government thinks the country has too many days off for its own good, but its proposal to cull some public holidays may not produce much of an economic benefit.
Prime Minister Francois Bayrou has proposed scrapping two of the country's 11 public holidays as part of a deeply unpopular emergency plan to plug a budget hole. In his sights is Easter Monday and one of four bank holidays in May, a month Bayrou compared to Gruyère cheese for its many holes.
Bayrou's idea is that working two extra days will generate more economic output and therefore revenues for the government. Recent experience from elsewhere and various economic studies suggest it won't be as simple as that.
In 2023 Denmark abolished Great Prayer Day, a Christian holiday that fell on the fourth Friday after Easter and dated back to 1686, to great popular discontent.
On the surface, the sacrifice paid off. The number of hours worked by the average Dane fell by less than in previous years, according to Danske Bank.
Yet when it comes to economic output, which is what matters for public finances, the impact of the extra day was tiny at between 0.01% and 0.06%, according to IMF estimates.
France's statistical agency INSEE put the boost to GDP of Bayrou's proposal at a similarly negligible 0.06%.
This is because time off is not all bad.
Of course it slows down production, particularly for manufacturing companies.
But it is also considered key for mental and physical health, and typically proves a boost to sectors like tourism.
LEISURE CAN BE AN ECONOMIC BOOST
In fact, economic studies find that output increases along with the number of national holidays - but only up to a point.
One study of 101 countries by the Centre for Future Labour Market Studies in Malaysia put that sweet spot at nine or 10 public closures in a year.
"As the number of public holidays increases, initially economic growth increases, but after some optimal point, when the number of public holidays increases further, economic growth starts to decline," the researchers said in the 2023 study.
The exact number may depend on the make-up of a country's economy.
A study of the Italian economy, which like the French is dominated by services and has on average 12 public holidays in a year, found that economic output did not vary or even slightly increased in years with more closures, indicating it was close to its own sweet spot.
"Companies have fixed production targets and work around holidays," said author Francesco Maria Esposito, an assistant professor at the Birmingham Business School.
The situation was similar in Germany, where the calendar is set by the 16 states and ranges from 10 to 13 holidays.
The Dusseldorf-based Macroeconomic Policy Institute (IMK) found that German states that introduced a public holiday more often than not experienced stronger economic growth than those that cut one.
"The equation 'fewer holidays equals more growth' simply does not hold up," said Sebastian Dullien, IMK's scientific director.
Portugal scrapped four public holidays at the height of its debt crisis in 2012 -- only to reinstate them four years later.
(Additional reporting by Maria Martinez in Berlin and Leigh Thomas in Paris Editing by Mark John and Frances Kerry)
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

'No alternative' to two-state solution, says France
'No alternative' to two-state solution, says France

The National

time5 hours ago

  • The National

'No alternative' to two-state solution, says France

There is 'no alternative' to a two-state solution between Israelis and the Palestinians, France told a UN conference co-chaired with Saudi Arabia on Monday. 'Only a political, two-state solution will help respond to the legitimate aspirations of Israelis and Palestinians to live in peace and security,' French Foreign Minister Jean-Noel Barrot said at the start of the three-day meeting. The conference comes days after French President Emmanuel Macron announced plans to formally recognise a Palestinian state in September, and as international outrage over the humanitarian situation in Gaza mounts. Saudi Foreign Minister Prince Faisal bin Farhan told reporters in New York that US President Donald Trump is an 'essential' actor that could act as a 'catalyst' to end the Gaza war. 'President Trump has in fact had success already in this regard, he was able to facilitate the first and only ceasefire so far in this conflict,' said Prince Faisal. 'We, as strong partners of the United States, continue to work closely with the US on many issues, and we hope that the US will continue to lead in the efforts for peace.' He also stressed Riyadh would not normalise ties with Israel without an end to the Gaza war. Palestinian Prime Minister Mohammad Mustafa told the high-level conference that the push for a two-state solution was a message to Israelis that peace and regional integration were still possible. 'It will be achieved through our independence, not our destruction,' Mr Mustafa said. 'Israelis are not doomed to be at eternal war. There is another way, a better way, that leads to shared peace, shared security and shared prosperity in our region, not for one at the expense of the other, but for all." Mr Mustafa called on Hamas to relinquish control of Gaza and hand over its weapons to the Palestinian Authority. The US State Department condemned the high-profile conference, calling it 'unproductive' and 'ill-timed'. 'This effort is a slap in the face to the victims of October 7 and a reward for terrorism,' Ms Bruce said. 'It keeps hostages trapped in tunnels. The United States will not participate in this insult but will continue to lead real-world efforts to end the fighting and deliver a permanent peace.' The UN Secretary General Antonio Guterres said this week's summit must not become another 'exercise in well-meaning rhetoric". 'It must serve as a decisive turning point, and it is the sine qua non for peace across the wider Middle East,' he asserted. Mr Guterres stressed that the devastation in the coastal enclave has reached an intolerable level and 'nothing can justify the obliteration of Gaza that has unfolded before the eyes of the world'. The UN chief criticised Israel's policies, including a Knesset declaration last week supporting the annexation of the occupied West Bank calling it 'illegal'. 'The wholesale destruction of Gaza is intolerable, it must stop.' he said.

Thailand and Cambodia begin truce talks as fighting drags on
Thailand and Cambodia begin truce talks as fighting drags on

Sharjah 24

time6 hours ago

  • Sharjah 24

Thailand and Cambodia begin truce talks as fighting drags on

More than 200,000 people have fled as the two sides fired artillery, rockets and guns in a battle over the long-disputed area, which is home to a smattering of ancient temples. The flare-up is the deadliest since violence raged from 2008-2011 over the territory, which is claimed by both sides because of a vague demarcation made by Cambodia's French colonial administrators in 1907. Hours ahead of the talks, an AFP journalist in the Cambodian city of Samraong -- 17 kilometres (10 miles) from the fraught frontier -- reported hearing a steady drumbeat of up to 10 blasts a minute. US President Donald Trump -- who both nations are courting for trade deals to avert the threat of eye-watering tariffs -- intervened over the weekend, and said both sides had agreed to "quickly work out" a truce. Thai acting Prime Minister Phumtham Wechayachai and Cambodia's Prime Minister Hun Manet began their talks in the administrative capital Putrajaya around 3:15pm (0715 GMT). They met at the residence of Malaysian leader Anwar Ibrahim, serving chair of the ASEAN bloc of which Thailand and Cambodia are both members, who earlier told media he would focus on an "immediate ceasefire". Washington's top diplomat Marco Rubio said State Department officials were on the ground in Malaysia to assist the "peace efforts" while Cambodia said a delegation from its close ally China would also attend. But ahead of the summit, Thailand and Cambodia traded fresh fire and barbed accusations. Cambodia's defence ministry spokeswoman Maly Socheata said it was "the fifth day that Thailand has invaded Cambodia's territory with heavy weapons and with the deployment of a lot of troops". As he departed Bangkok airport, Phumtham told reporters he did not believe Cambodia was "acting in good faith" and called on the country "to demonstrate genuine intent" in the meeting. In Thailand's Surin city -- 30 kilometres from the border and a hub of evacuees fleeing the fighting -- 58-year-old Lamduan Chuenjit shared her leader's scepticism. "I hope the negotiation goes well today and ends with a ceasefire," the cleaner told AFP while sweeping a shopfront. "But I do wonder how trustworthy Cambodia is." Both sides point the finger On the eve of the talks, Thailand's military said Cambodian snipers were camped in one of the contested temples, and accused Phnom Penh of surging troops along the border and hammering Thai territory with rockets. It said there was fighting at seven areas in the rural region, marked by a ridge of hills surrounded by wild jungle and fields where locals farm rubber and rice. "The situation remains highly tense, and it is anticipated that Cambodia may be preparing for a major military operation prior to entering negotiations," the Thai military statement read. Thai King Maha Vajiralongkorn marked his 73rd birthday on Monday, but a notice in the country's Royal Gazette said his public celebrations scheduled for Bangkok's Grand Palace have been cancelled amid the strife. Trump has threatened both countries with high levies in his global tariff blitz unless they agree to independent trade deals -- but said he would "look forward" to signing them once "peace is at hand". Each side has already agreed to a truce in principle, while accusing the other of undermining peace efforts and trading allegations about the use of cluster bombs and targeting of hospitals. Thailand says eight of its soldiers and 14 civilians have been killed, while Cambodia has confirmed eight civilian and five military deaths. The Thai military said it had returned the bodies of 12 Cambodian soldiers killed in combat. More than 138,000 people have fled Thailand's border regions, while around 80,000 have been driven from their homes in Cambodia. With the skirmish enflaming nationalist sentiments, Thailand warned its citizens to "refrain from any kind of violence, whether in speech or action" against Cambodian migrants living in the country.

US calls Saudi and French-led conference on two-state solution a 'publicity stunt'
US calls Saudi and French-led conference on two-state solution a 'publicity stunt'

Middle East Eye

time6 hours ago

  • Middle East Eye

US calls Saudi and French-led conference on two-state solution a 'publicity stunt'

The United States on Monday lashed out at a United Nations conference promoting a two-state solution to the Israel-Palestine conflict that was hosted by its close allies France and Saudi Arabia. The US State Department labelled the three-day event "unproductive and ill-timed", as well as a "publicity stunt" that would make finding peace harder. The diplomatic push is a "reward for terrorism", the statement said. The US deployed even harsher words against French President Emmanuel Macron, calling his decision to recognise a Palestinian state last week 'counterproductive', saying its Nato ally's decision 'undercuts our diplomatic efforts'. France is hoping that the UK will follow its lead. New MEE newsletter: Jerusalem Dispatch Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters More than 200 British members of parliament voiced support for the idea on Friday, but Prime Minister Keir Starmer has resisted. Middle East Eye has revealed that the US pressured both the UK and France against recognising Palestine earlier this year. The conference kicked off on Monday in New York City, with participants reaffirming that there is "no alternative" to the conflict besides a two-state solution. France and Saudi Arabia's leadership of the event underscores how the US's unchecked support for Israel's war on Gaza is putting its diplomacy at odds with key partners. "Only a political, two-state solution will help respond to the legitimate aspirations of Israelis and Palestinians to live in peace and security. There is no alternative," French Foreign Minister Jean-Noel Barrot said at the start of the three-day meeting. UN secretary general Antonio Guterres said at the meeting that "the two-state solution is farther than ever before", decrying Israel's "creeping annexation" of the occupied West Bank and "the wholesale destruction of Gaza". The meeting comes as Gaza descends into famine as a result of Israel's siege of the enclave. Hundreds of starving Palestinians have been killed trying to obtain food from the so-called Gaza Humanitarian Foundation that is backed by the US and Israel. Deaths from famine and malnutrition have soared in recent days. US asked Saudi Arabia to send missile interceptors to Israel during Iran conflict. Riyadh refused Read More » US President Donald Trump was asked about the famine on Monday and did not dispute it. 'That's real starvation stuff,' Trump said. 'I see it, you can't fake that.' 'Those children look very hungry,' he said. 'We have to get the kids fed.' But Trump has continued to fault Hamas for the crisis, claiming the group is stealing aid despite a US government assessment contradicting that accusation. More than two dozen of the US's allies - including countries traditionally close to Israel - have accused it of 'drip feeding' aid into Gaza. The Trump administration has clashed with Israel on several issues - including striking an independent ceasefire with the Houthis in Yemen and condemning Israeli strikes on Syria - but has given it full backing for Israel to wage war on Gaza. Last week, Trump announced that the US was pulling out of ceasefire talks. He blamed Hamas for the impasse, a move analysts say was in keeping with more than two years of US messaging to provide cover to Israel for acts of genocide in Gaza, according to two major Israeli human rights groups and scores of western organisations. "It's widely understood that there are no real strategic objectives to fulfill militarily unless the ultimate goal is displacement," Michael Hanna, a Middle East expert at the International Crisis Group, told MEE previously. "In the meantime, it appears the US is willing to stand by as famine deepens throughout Gaza." Even as the US criticised the UN summit, its top participants tried to entice Trump back to talks. Saudi Arabia's Foreign Minister Faisal bin Farhan al-Saud said Trump could be a "catalyst" to ending the war in Gaza and jump-starting the two-state solution. Trump has regularly said he wants to strike a normalisation deal with Saudi Arabia and Israel, building on the 2020 Abraham Accords, which he considers a signature foreign policy achievement. Riyadh says to achieve that goal, Israel would need to take irreversible steps towards the creation of a Palestinian state, with a ceasefire in Gaza the first precondition. Saudi Crown Prince Mohammed bin Salman has said publicly that Israel is committing genocide in Gaza. Beyond facilitating conditions for the recognition of a Palestinian state, the three days of meeting will focus on three other issues, including the reform of the Palestinian Authority, disarmament of Hamas and normalisation of relations with Israel by Arab states as part of a two-state solution.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store