Germany: even ‘liberal’ economists are calling for high wage increases in 2012

Increases to support German and European growth.  “In theory, unions are rights.  After several years of wage moderation, the time has come to up the level of wage claims.  I think they will know how to remain reasonable” declared economic expert Hans-Wener Sinn in this first week of 2012.  Sinn being one of the most influential economists in Germany, renowned for his liberal views and good opinions over employers’ positions, this declaration is a true sign as the country’s two greatest industrial unions, the IG-Metall and the IG BCE (chemistry) are preparing to renegotiate sectoral collective agreements.  His colleague, Gerd Wagner, director of the equally influential German Institute for Economic Research (DIW) agrees and calls for wage increases of at least 3 percent for 2012, a year during which experts aren’t expecting serious problems in terms of inflation.  “Germany cannot hope to keep banking on an ‘export-only’ system while its European neighbors are tightening their belts.”  In short, while planning that the employment market will remain strong and the Germany should avoid the recession, German economists think that a second driving force should be used, to support German growth via domestic consumption and, with imports, support the growth of its European trading partners.
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qually influential German Institute for Economic Research (DIW) agrees and calls for wage increases of at least 3 percent for 2012, a year during which experts aren’t expecting serious problems in terms of inflation. “Germany cannot hope to keep banking on an ‘export-only’ system while its European neighbors are tightening their belts.” In short, while planning that the employment market will remain strong and the Germany should avoid the recession, German economists think that a second drivi

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