Sanna Marin, PM of Finland and world’s youngest Prime Minister suggested new rule of 6 hours per day, 4-day working rule, although groundbreaking and holistic, has a few concerns. To begin congratulations to Sanna for her marvelous achievement.
First, reduced working hours might bring down the productivity of the country. Second, wages move in tandem with productivity and productivity, in turn, defines the output. If payments continue to grow while productivity lags, it creates a fiscal deficit. Mismatching of productivity is one of the prime problems with Euro since countries at different trajectories of productive output are mapped together.
On the contrary to popular opinion, the Euro is a fixed currency. The Euro mechanism assumes the market will fine-tune factor payments based on productivity of respective countries. However, Greece example illustrates that it does not work so. Finland is one of the mother of innovative countries and one of the world leaders in defining employee empowerment and flexible working hours.
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