Wages, collective bargaining and economic governance

Europe

The Euro crisis and debate about economic governance has brought the issues of wage determination and collective bargaining into sharp focus. Representatives of the European Central Bank, European Council and European Commission have been quick to call for wage moderation, to argue that the public sector should set an example for the private sector, to suggest that there should be greater decentralisation of bargaining and to call into question systems of wage indexation. However, as a series of recent documents from the Commission and Council show, there is no clear evidence to back up any of these assertions.
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