Higher German wages are not the solution

Commentary feature in which author says that it would be insane to embark on an expansionary wage policy in Germany as a measure to help the challenges facing the eurozone's economies. Just at the time the EU has launched a new initiative to make the continent’s economies more competitive (EU 2020), after the failure of the 'Lisbon agenda', an approach that deliberately tried to reduce the competitiveness of Germany, one of the most successful exporters in world markets, would look like a bad joke.

The writer is President of the Centre for Financial Studies and a former member of the European Central Bank’s executive board

ESO: Background information: Lagarde criticises Berlin policy http://www.europeansources.info/record/lagarde-criticises-berlin-policy/

ESO: Background information: Germany rebuffs Lagarde criticism http://www.europeansources.info/record/germany-rebuffs-lagarde-criticism/

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