For many German industrialists, the path to economic recovery seems clear: the population must work harder. This perspective, deeply rooted in the German work ethic, is presented as a simple solution to the current economic challenges the country is experiencing. The suggestion to extend working hours or drastically increase productivity is put forward by organizations such as the Confederation of German Employers' Associations (BDA) and the Federation of German Industries (BDI). They emphasize that increasing aging and a shortage of skilled labor are putting pressure on the economy, and that working more is a way to maintain prosperity. This debate, introduced by publications like De Tijd, raises important questions about the future of work in Europe and the potential impact on countries including Belgium.
What is happening
The call for 'more work' in Germany is not new, but it is gaining more weight given the recent economic slowdown. Statistics from the German Federal Statistical Office (Destatis) show a slight contraction of GDP in recent quarters, while inflation remains stubbornly high. Industrial sectors are struggling with high energy costs and disruptions in supply chains. This situation has led to a renewed discussion about working hours, with some advocating for a return to longer workweeks or the abolition of part-time work options. Critics of this proposal point to the potential negative impact on work-life balance and the effectiveness of such measures in a modern, knowledge-driven economy. The Chambers of Commerce and Industry (CCI) in various federal states have already spoken out about the need for reforms, albeit not always in line with a simple increase in working hours.
A broader European perspective
The German debate takes place against a backdrop of similar discussions in other European countries, including Belgium. Countries like France and the Netherlands are also grappling with aging populations, labor shortages, and maintaining competitiveness. The European Central Bank (ECB) closely monitors these developments, as they can impact the broader eurozone. The National Bank of Belgium (NBB) and the Federal Planning Bureau (FPB) regularly analyze the consequences of demographic trends and labor productivity for the Belgian economy, making this debate relevant for us as well.
Background
The work ethic in Germany, often associated with efficiency and discipline, has historically contributed to the country's economic success. However, recent decades have led to a shift, with an increasing focus on flexibility and employee well-being. Trade unions such as the German Trade Union Confederation (DGB) have generally advocated for shorter workweeks and better working conditions. The current proposal by industrialists to 'work more' runs counter to this trend and evokes memories of economic policies from earlier times when longer working hours were often seen as a panacea for economic malaise. This tension between the interests of employers and employees is a recurring theme in the socio-economic history of Germany and, by extension, Europe. In Belgium, we see similar tensions, for example, during negotiations on wage margins and the flexibilization of the labor market, conducted between social partners within the Central Council for the Economy (CRB).
What it means for Belgium
For Belgium, as a small open economy and a neighboring country to Germany, developments in our eastern neighbor can have significant consequences. A strong Germany is generally favorable for Belgian exports and economy. Should Germany decide on policy measures that increase working hours, this could affect the competitiveness of Belgian companies. The Belgian federal government and the regional governments, such as the Flemish government, are keeping a close watch. Policymakers in our country will closely monitor the 'work more' debate in Germany. The discussion could be a catalyst for a re-evaluation of Belgium's own labor participation rate and work organization, especially given the demographic challenges our country also faces. The question is whether Belgium will follow suit or choose innovation and automation to increase productivity. Policy decisions on this will impact the employment and socio-economic model of our country.
De Tijd reported: "For many German industrialists, the path to economic recovery seems clear: the population must work harder."
In the coming years, it will become clear which direction Germany will take and how this will determine the economic reality of the entire eurozone, including Belgium. The balance between productivity, employee well-being, and global competitiveness will be central to this complex issue, and the decisions made now will have long-term consequences for the labor market and society as a whole.