The combination of an economic downturn and rapidly rising inflation is a new experience for most Europeans. The Covid-19 pandemic and the Russia-Ukraine war produced unprecedented disruptions, or as economists would say: a shock on both the supply and demand sides. And, as the holiday season kicked in, a forceful tightening of monetary policy signalled […]
Wage inequality is on the rise, pushed by technological change, globalisation and trade, and institutional deregulation. It is a problem of fairness. But inequality itself also has negative effects on the economy as a whole. Increasingly, this inequality can be traced back to companies and pay setting. Companies increasingly differ in their productivity and revenue. […]
A discussion on a Social Union is needed to avoid a further widening of the gap between the economic and social sides of the integration
Gaining competitiveness should rather be done by increasing quality than by lowering production costs.
Wages in Europe – an overview
The crisis recovery strategy was based on falling wages. A jobs-centred recovery strategy is necessary.