Progressive policies for wage-led growth in Europe

Europe needs a fundamental rethinking of its economic policy. The crisis in Europe has laid […]

Policy Brief

06/04/2016

Europe needs a fundamental rethinking of its economic policy. The crisis in Europe has laid bare the fundament flaws of the European economic policy regime based on the Maastricht Treaty and the Stability and Growth Pact. The EU’s policy mix has resulted in a deep economic crisis in southern Europe and a weak recovery in the northern countries, with the Euro area teetering at the brink of deflation. Europe needs a fundamental rethink of fiscal policy, monetary policy, financial regulation and wage policy.

Individual EU Members States (MS) and the European Commission (EC) have long encouraged wage moderation, explicitly recommending real wage growth below productivity growth to increase the international competitiveness of the EU. This policy has resulted in three decades of increasing inequality, declining share of wages in national income, and the emergence of a new class of super rich without generating a sustainable growth model for Europe. 

Read the Policy Viewpoint

Find all related publications
Publications
22/11/2023

The macro-economic impact of the cost crisis

Lessons for Europe
10/10/2023

Next Left country case studies

Exploring the state of Social Democracy in France, Austria, Romania and Australia
04/10/2023

Social democracy without the people

Case study of the polish Democratic Left Alliance (SLD)
18/09/2023

Making trade work for prosperity, people and planet

FEPS Primers series - Arancha González and Yanis Bourgeois
Find all related events
Events
Upcoming
01 - 02/12/2023
Stockholm, Sweden (Expert meeting)

Progressive Governance seminar

Ahead of a crucial election year in 2024 progressives across Europe and North America face […]
Past
30/11/2023
FEPS HQ (Expert meeting)

Living up to, not leaving aside

The Progressive Strategy towards the elections 2024
15 - 17/11/2023
Bucharest, Romania (Training)

Ones to Watch

FEPS, with the support of Fundația Stânga Democratică, brought the members of the ‘Ones to […]
Find all related news
News
29/11/2023

Economic Democracy

FEPS has launched an initiative on Economic Democracy
09/10/2023

Tax the rich

A European Citizens' Initiative
14/09/2023

Call for tender – Researcher on inflation

This call for tender closed on 03/10/23
23/06/2023

Call for tender – research and project coordination

Basic Information Project Can the European progressive centre left gain voters from populist right parties […]
Find all related in the media
In the media

“Trade doesn’t work in isolation from good domestic policies” Interview to Arancha González

by Borderlex 19/09/2023
Interview to Arancha González, former Spanish foreign minister, who released together with FEPS the new book entitled 'The Trade Handbook: Making Trade Work for Prosperity, People and Planet'

A szociális unió imperatívusza

by Új Egyenlőség 09/09/2023
'The imperative of Social Union'. Article about FEPS book 'Europe’s Social Integration: Welfare Models and Economic Transformations' by László Andor.

Após 66 anos de adiamentos, a barragem do Pisão entrou em contra-relógio

by Pùblico 19/08/2023
'After 66 years of postponements, the Pisão dam has entered a race against time' Pùblico's article mentions FEPS Policy Study 'Governing the RRF'

Ukrainian economy and society: whither the (postwar) country?

by Commons 16/06/2023
In Commons' article, Yuliya Yurchenko, co-author of FEPS’ book 'Europe and the war in Ukraine', outlines the consequences of the Russian invasion of Ukraine for the Ukrainian population and the plans needed for Ukraine's recovery.