Contours of a European Minimum Wage Policy

Demands for a European Minimum Wage Policy, which fundamental aim is to guarantee every worker in Europe an equitable wage, differ. So far minimum wages in many European countries are set at rather low levels and are thus insufficient to prevent income poverty.

The aim of a European Wage Policy can not be the determination of a Europe-wide uniform minimum wage amount, but rather an agreement on a European Minimum Wage Norm. Such Norm could establish minimum wages as a certain percentage of national median or average wage.

A possible European Minimum Wage Norm according to which all national minimum wages should at least be equivalent to 60% of national median wages would affect about 28 million workers or 16% of the overall European workforce.

A European Minimum Wage Policy could also contribute to a better coordination of wages in Europe in order to stabilise domestic demand and to prevent deflationary developments.