Denmark canceled Store Bededag - a 340-year-old Lutheran holiday - in 2024 to generate €400 million annually for defense spending, aiming to meet NATO’s 2% GDP target. The move sparked protests but set a precedent: public holidays carry real fiscal weight.
Economists Lucas Rosso and Rodrigo Wagner found each additional public holiday reduces annual GDP by roughly 0.08%, even after accounting for tourism spending. In Germany, with a €4.3 trillion economy, that’s €3.4 billion per missed workday.
Holiday counts vary sharply: Lithuania observes 15, Germany just 9. Under Rosso-Wagner’s model, that 6-day gap costs Lithuania an estimated €360 million annually in foregone output compared to Germany.
Yet productivity gains from rest cannot be ignored. The IMF notes well-rested workers boost hourly output and reduce accidents. No European government is moving to eliminate holidays entirely.
The debate isn’t about abolishing days off - it’s about recognizing their hidden cost in an era of strategic investment and fiscal discipline.