Paul De Grauwe on the European Growth Agenda

by Paul De Grauwe on 5 June 2012 @pdegrauwe

Professor Paul De Grauwe, London School of Economics and Political Science, discusses the European growth agenda with Social Europe Journal.

This interview is part of the European growth strategy expert sourcing jointly organised by Social Europe Journal, the Friedrich-Ebert-Stiftung, the Bertelsmann Stiftung, the IMK of the Hans Boeckler Stiftung and the European Trade Union Institute (ETUI).

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This working paper discusses the use of unit labour costs (ULC) by the European Commission as a measure of competitiveness of exports, especially in central and Eastern Europe (CEE). It shows the flawed nature of the European Commission’s argument that increasing wages ahead of measured productivity would necessarily represent a threat to export competitiveness. It demonstrates that the recorded measure of productivity appears to be low in countries with lower wage levels precisely because wages are low, even when the work performed is often very similar, or identical, to much better-paid work in higher income countries. The conclusion is that there is scope for significant wage increases without harming export competitiveness.

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Sixth European Working Conditions Survey

The sixth European Working Conditions Survey (EWCS) paints a wide-ranging picture of Europe at work across countries, occupations, sectors and age groups. EU employment policy priorities aim to boost employment levels, prolong working life, increase the participation of women, develop productivity and innovation and adapt to the digital challenge. The findings from the EWCS draw attention to the range and scope of actions that policy actors could develop to address the challenges facing Europe today.

Paul De Grauwe on the European Growth Agenda

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