Fuest Calls German Part‑Time Debate a "Side War" and Urges Social System Overhaul
Economy / Finance

Fuest Calls German Part‑Time Debate a “Side War” and Urges Social System Overhaul

Clemens Fuest, president of the Ifo Institute, sided with MIT‑chief Gitta Connemann’s criticism of the so‑called “lifestyle part‑time” debate while also calling for additional measures.

During a Monday interview with the TV channel “Welt”, he said, “That’s a reasonable proposal. At the same time, it’s a side‑warzone”.

Fuest argued that the most important issue is making it worthwhile to work longer hours. “Our social system is so advanced that for many people it does not pay off to work more. That’s why a lot of people drop back to part‑time” he explained. “It would be crucial to ensure that in the income range of €3,000 to €5,000, it is truly worth working. Whoever earns more gross should receive more net”.

To achieve this, he said the social system must be reformed. “Many people receive housing allowance in this bracket and lose it when they earn more, so they end up with the same or even less take‑home pay” Fuest noted. “That is the main reason why many resort to part‑time employment. That needs to be reformed”.