Ice mel­ting: new oil­fields and sea­borne trade to dis­co­ver?

Investir en Europe - - Contents -

Some mem­ber states of Eu­ro­pean Union don’t com­pel gua­ran­teed mi­ni­mum wage (GMW) as Ger­ma­ny but not much lon­ger. Those coun­tries have a com­pe­ti­tive ad­van­tage and flexi­bi­li­ty la­bor mar­ket for uns­killed wor­kers who find ea­si­ly jobs. But there is no so­cial se­cu­ri­ty be­ne­fits for the ‘poor wor­kers’.

The Conser­va­tive Chan­cel­lor An­ge­la Mer­kel forms a ‘coa­li­tion’ with the So­cial De­mo­crats which “will not conclude ne­go­cia­tions wi­thout a uni­ver­sal le­gal mi­ni­mum wages” .

In 2015, the Ger­man go­vern­ment will in­tro­duce a na­tio­nal mi­ni­mum wage of €8.50 an hour. What will be the conse­quences? - In­crease the wages by 17% for all the 6 mil­lion Ger­man sa­la­ried . A po­si­tive ef­fect of this could be an in­crea­sing consump­tion and so eco­no­mic growth. But a ne­ga­tive ef­fect as the in­fla­tion could de­crease the pur­cha­sing po­wer. - Cause job losses: sa­la­ries with wages be­low €8.5 are 27% in Eas­tern Ger­ma­ny, 15% in Wes­tern Ger­ma­ny, half of those sa­la­ries work in ser­vice to con­su­mer sec­tor. This eco­no­mic sec­tor and the uns­killed wor­kers will pro­ba­bly know an in­crea­sing unem­ploy­ment (re­lo­ca­tion of the ac­ti­vi­ties, in­de­pendent wor­kers...). But this ne­ga­tive ef­fect is not cer­tain (it will de­crease ille­gal job and in­de­pendent wor­kers maybe) .

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