John Bruton
Question:18 Mr. J. Bruton asked the Minister for Finance his views on the proposal by his German counterpart that wage policies in euro-zone member states should be co-ordinated (details supplied). [24451/98]
Written Answers - Wage Policies.
Wage policies in euro-zone member states are set according to national practice. In some member states there would be a centralised approach while in others a more free market approach is taken.
The actual rates of wages obtaining in a member state would reflect in general the macroeconomic conditions of that State.
In the new euro context there is increased EU central surveillance of euro member states macroeconomic policies. The Deputy will be aware of the roles of the new Euro 11 ministerial group and of the European Central Bank.
While there can be exchanges of information on wage setting policies, we would be opposed to any mandatory co-ordination of national wage policies across the euro zone.
Our view would be that national decision-making ensures an appropriate flexibility across the euro zone and is more conducive to correct adjustments being made to reflect national and regional economic circumstances.