Economic recovery in Europe, now in its fifth year, remains fragile and certainly not sufficient for reversing the output and job losses caused by the crisis and the responses to it.

The latest European Commission economic forecasts suggest that the conditions for an acceleration of economic activity are not yet in place, with investment and wage growth being still weak. Thus, the prospects of wage growth have now become crucial for the sustainability of economic recovery.

However, job creation and employment recovery so far have not proved to be sufficient for stimulating wage growth. According to research by the European Central Bank, this is due to both the fact that the created jobs are not of high quality (for example, temporary or part-time) and due to labour market reforms that have weakened the bargaining power of wage-setters.

Given these facts, what should be the way forward for stimulating wage growth and consolidating economic recovery in Europe?

Datum Dienstag, 19. September 2017, 18:30
Permanent Representation of Austria to the EU, 1st floor
Avenue de Cortenbergh 30