WSI: In 18 from 27 EU countries threaten 2011 real wages
In two out of three EU countries the workers are threatening this year in real wages. In the European Union average wages per worker therefore 2011 expected to decrease after deducting inflation to 0,8 percent. In Germany the development 2011 should indeed be more positive than most neighbors. However, only a stagnation of wages is foreseeable again after deduction of this year relatively high inflation. This shows the new European collective report of the Economic and Social Research Institute (WSI) in the Hans Böckler Foundation. In Europe, therefore, the development of wages "are hardly any positive impetus to overcome the structural economic problems and initiate a sustainable growth strategy" went writes WSI collective expert Dr. Thorsten Schulten in the new edition of the WSI.
In view of real wage losses and austerity programs in many countries, the scientist warns of a "Europe-wide spiral of wage reductions". According to Schulten, the development could become even worse because the European governments have committed themselves to a highly problematic restrictive wage policy in the so-called "Euro Plus Pact". In the agreement formerly known as the "Pact for the Euro", at the end of March the European heads of state and government formulated, among other things, moderate wage increases and a transfer of wage formation to companies as ways to increase competitiveness. In addition, more "flexibility" should be achieved through labor market reforms. Critics warn of interventions in collective bargaining autonomy.
The WSI expert makes it clear that real per capita wages fell in 2010 EU countries as early as 13. Losses were highest in Greece at 8,2 percent. In its economic forecast, which Schulten evaluated, the EU Commission even expects real wage losses in 18 of the 27 member states this year. The main reasons for the widespread real wage losses are the price increase of three percent on average in the EU and comparatively weak wage increases, especially in the southern European countries.
For Germany, the EU Commission is forecasting minimal real wage growth of 2011 percent for 0,1. The relatively strong development in nominal gross wages of 2,7 percent in a multi-year comparison would then be largely eaten up by inflation. In 2010, wages in Germany rose in real terms for the first time since 2003 - by one percent. According to WSI data, which are slightly higher than the Bundesbank's collective bargaining figures due to the different methodology used, German collectively bargained wages increased by 2010 percent in real terms in 0,6 and by 2009 percent in 2,4.
"Germany was able to give up its long-standing bottom position in terms of wage policy for the time being. However, this was less due to a particularly expansive wage policy than to the fact that the overall economic wage development was even weaker in most other EU countries," says WSI researcher Schulten, summing up the current trend. The scientist thinks it makes sense to stop further wage cuts in the crisis countries. Otherwise the domestic economic stagnation in these countries cannot be overcome, writes Schulten. In the economically strong EU countries and especially in Germany, a significantly stronger wage development in the next few years could help to increase economic momentum in Europe.
Source: Düsseldorf [WSI]
