Trade, Economic Policy, Europe

Using figures from the Eurostat statistics agency, the European Trade Union Confederation (ETUC) shows that the price of the most basic food stuffs is still rising up to seven times faster than wages. The price of olive oil is 75% higher than it was in January 2021, while there have been substantial increases in the price of potatoes (53%), eggs (37%) and butter (27%). By contrast, the ETUC shows that nominal wages have increased by 11% in the EU and 10% in the Euro area over the last three years. The confederation has also challenged the International Monetary Fund over its analysis of wages

IPSO, the main union representing staff at the European Central Bank (ECB) has published the results of a survey of employees revealing around two-thirds of workers had concerns about the ECB policy on pay, inflation and interest rates. Widely reported in the media, the union says that it was not just unhappiness about the 4% pay increase awarded to ECB employees (less than half the current inflation rate in Germany) but also the bank’s reliance on interest rises as a tool to control inflation. IPSO’s message to staff said that the ECB policy of wage moderation was in its view biased against

The European Trade Union Institute has published an updated analysis of the treatment of social issues in the European Semester - the process of economic policy coordination. This reveals, for example, the extent to which the country-specific recommendations address the question of collective bargaining, with the European institutions calling for reforms in many countries, with the accent on decentralisation of bargaining despite the lack of evidence that this produces any economic benefits.