Brussels argues that wages rise in Germany – Tribune.fr

Brussels argues that wages rise in Germany – Tribune.fr

Brussels believes “ must ” higher wages in Germany for the country to help its European neighbors behind, said Saturday the European Commissioner for Employment Laszlo Andor .

“It would be very important for Germany intensifies public investment, stimulates demand and reduce its excessive trade surpluses, which are hurting its European neighbors. To this, a change in wage policy is vital from the point of view of the commission, “said the Hungarian, responsible for Employment and Social Affairs in Brussels, in an interview with the German daily Die Welt, forthcoming Sunday.

Wage growth is lower than that of productivity

“ Wage growth remained strongly behind the evolution of productivity “for over 10 years in Germany, the European Commissioner in critical columns in the conservative newspaper. “ It would be better if wages increased along with productivity ,” said he added.

The debate on higher wages has recently been revived in Germany . The head of the Bundesbank, Jens Weidmann, has particular that wages had a margin of 3% increase in a country where, in places “ we are in near full employment “.

In fact, Germany has experienced years of wage restraint, a key factor in the competitiveness of its companies.

h2 <> Correct competitiveness differential

In a Eurozone still in the economic doldrums, the idea has gained ground that in some European boost to German wages would benefit all, correcting the difference in competitiveness and boosting the purchasing power of households in the largest market area.

France is customary call foot in that direction. The rhetoric also has its adherents in Germany, for example among the Social Democrats, the initiators of the law on the minimum wage, which will come into force on 1 January 2015.

But the blow of soft German economy in the second quarter throws a veil over these temptations wage increase. The country’s growth showed a decline of 0.2% between April and June. In this context, the German business has already warned that sectoral wage negotiations in the coming months “ will be hard .”