Demand – above all on the part of some deficit countries within the EU, raised around 2010 and then taken up as a proposal by the EU Commission – to equalize wage costs across the EU. The background to such demands is that the export successes of some countries – such as Germany and the Netherlands in particular – can be attributed to the fact that the share of labor costs is too low compared to other member states. – Among other things, this overlooks the fact that an increase in wages in an EU surplus country cannot in the least solve the structural weaknesses in a deficit country. Each member of the Community must itself ensure that its economy becomes more competitive. – See bail-out, ClubMed, euro bonds, common, euro states, moral hazard, solidarity, financial, growth differentials, intra-currency area, currency area, optimal. – Cf. Deutsche Bundesbank Monthly Report of May 2014, pp. 23 et seq. (nominal wages in the euro area in relation to adjustment measures; references; overviews).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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