(14 November 2014) – “Contours of a European Minimum Wage Policy”, a paper published by the Friedrich-Ebert-Stiftung foundation, shows that a European Minimum Wage Policy could contribute to a better coordination of wages in Europe.
Demands for a European Minimum Wage Policy, which fundamental aim is to guarantee every worker in Europe an equitable wage, differ. So far minimum wages in many European countries are set at rather low levels and are thus insufficient to prevent income poverty.
A possible European Minimum Wage Norm according to which all national minimum wages should at least be equivalent to 60 per cent of national median wages would affect about 28 million workers or 16 per cent of the overall European workforce.
A European Minimum Wage Policy could also contribute to a better coordination of wages in Europe in order to stabilise domestic demand and to prevent deflationary developments.