It is deeply unfair now to shift the burden completely to wages and workers, while those that profited from speculation are free to go about their business as usual. The ETUC warns it will not accept a system of economic governance or a change in the European Treaty turning wages into the single instrument of adjustment.
Says John Monks, General Secretary of the ETUC: "Flexible wages will make matters worse. They will unbalance the economy by adding to deflationary or inflationary trends, while also worsening inequalities. Policy should urgently re appraise the role of wages to function as a nominal anchor for the economy by stimulating demand”.