Europe
The ETUC has argued that the European Central Bank should take action to boost the European economy rather than be too concerned about the potential impact of increasing oil prices on inflation. The ETUC notes the modest fall in pay settlements across Europe over the last four years and argues for measures to boost domestic demand.
Read more at > ETUC
The ETUC has criticised the European Central Bank for its decision to increase interest rates by a quarter of a percent. The ETUC says the rise will damage prospects for the continuing recovery of economic growth and that there is no evidence of a pick-up in wage inflation as argued by the Bank. The ETUC maintains that wage increases are running at around 2.5%, little different from 2005 and with no indication of any significant change running into 2007. [Read the press release at > ETUC (EN)->http://www.etuc.org/a/2894] [And at > ETUC (FR)->http://www.etuc.org/a/2896] [And the background
The latest issue of the ETUC's collective bargaining bulletin exposes the holes in the European Central Bank's relentless emphasis on the need for moderation in wage policy. The ETUC points out that for all intents and purposes moderate wage increases have been the norm across Europe for nearly 10 years. Even with some indication of higher increases in some countries, the ETUC argues that there is little prospect of inflationary wage developments. The bulletin then goes on to point out that the ECB's focus on wages and the claimed threat of inflationary wage demands in countries like Germany
The ETUC has criticised the European Central Bank's (ECB) decision to raise interest rates because it fails to deal with the international pressures that are leading to inflation. The Confederation also argues that the ECB is wrong about pay developments across Europe and that the wage-price spiral that the Bank is warning of will not take place in the current economic climate and because of recent trends in collective bargaining. [Read more at > ETUC (EN)->http://www.etuc.org/a/5193] [And in French at > ETUC->http://www.etuc.org/a/5194] [Also more at > ETUC (EN)->http://www.etuc.org/a/5177]