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Wage-led growth for Europe? Consequences of wage competition between European countries

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Policy Brief

09/10/2014

Call to Europe III, Conference Paper on wage-led growth in Europe

Bela Galgoczi

The “therapy” based on front loaded austerity across the board matched with asymmetrical adjustment in wage costs is thus doing more harm than good. This is not only socially unjust (workers and taxpayers paying for the fault of reckless bankers) but it does not work in the economic sense, either. Even if the Eurozone had just come out from the phase of technical recession, growth is incremental and fragile.

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