Particle.news
Download on the App Store

Germany’s Top Economic Adviser Defends Gen Z, Says Productivity—Not Longer Hours—Will Lift Growth

She also cautions that reliance on U.S. LNG leaves Germany vulnerable to political pressure.

Overview

  • Monika Schnitzer argues Generation Z works more and enters the labor market earlier than prior cohorts, while many older workers choose retirement at 63 or 64.
  • Schnitzer rejects blaming part-time employees for weak performance, pointing to childcare gaps and tax incentives like Ehegattensplitting that discourage full-time work for second earners.
  • She says growth depends on higher labor productivity and calls for stronger investment in digitalization, automation and AI rather than extending weekly working hours.
  • Schnitzer warns that heavy dependence on U.S. LNG could be used as leverage by President Donald Trump and urges a strategic gas reserve and broader supplier base including Qatar, Norway, the Netherlands, Belgium and African producers.
  • Germany’s Federal Network Agency reports gas supplies remain secure, noting storage near 47 percent is appropriate given expanded import routes and traders’ new hedging strategies.