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European Commission intrudes into referee in the match between France and Germany on growth … and gives right about that Francois Hollande. In an interview with German daily Die Welt , Laszlo Andor, EU Commissioner for Employment, is clear: we must “Germany multiplies public investment, stimulates demand and reduce its surplus excessive trading, which harm its European neighbors. “
The argument Brussels gives credit to the grievances developed by the French President in an article published in The World 4 August. Hollande demanded by Germany “more support to growth,” European. A plea that left marble Angela Merkel, leaving the spokesman of his government, Christiane Wirtz, care to say “nein” to the appeal of French foot. “The very general statements from Paris provide no reason for any adjustments in economic policy,” she replied.
In addition to Brussels, higher wages in Germany is “indispensable” to rebalance growth in Europe. For years, low German wages have boosted the competitiveness of its companies at the expense of its European neighbors, without stimulating the consumption of German households, the largest market in the euro area.
But the salary increase is less debate in Germany. The head of the Bundesbank, Jens Weidmann, said last week that the unemployment rate very low, allowing a margin of 3% increase because in places, Germany has a near full employment. Moreover, wage growth was one of the key demands of the Social Democrats to form a coalition government. They imposed Angela Merkel a law on the minimum wage, which will come into force on 1 January 2015.
However, the standstill of the European economy does not spare Germany. The country saw its growth decline of 0.2% between April and June. The employers have already announced that in this context, wage negotiations “would be difficult.” But some economists, including within the Bundesbank, want to believe that higher wages could curb inflation and prevent the German economy seizes up. In other words, if Germany raises wages, it will not be for France or Brussels.
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