Wage growth in Germany, a move which will help in multiple levels within other European countries is considered as essential by Brussels, according to the Commissioner of Employment, Social Affairs and Inclusion.

The dialogue on wage growth has recently been revived in Germany. Germany has implemented a policy of restricting salaries for years and this has been a key factor for increasing the competitiveness of its enterprises.

While the euro area continues to be located in the midst of an economic decline the idea is gaining ground among some Europeans, for whom wage growth in Germany would prove beneficially for the whole of the EU, since it partially corrects the competitiveness gap but also stimulates purchasing power of households in Europe’s largest market.

France has repeatedly made calls for it. The rhetoric has seen warm supporters in Germany, especially within the ranks of the Social Democrats who also suggested a law on minimum wage.

In this context, employers in Germany have already warned that negotiations for collective agreements in various sectors, which are scheduled to be launched in the coming months “will be difficult”.