The EU Commission proposes national committees to assess competitiveness. German Trade Unions reject the proposal out of hand.
This is the translation of an article that was published on flassbeck-economics October 29 2015.
Sometimes events show better than a thousand words what is wrong with Europe. On October 21st, the Commission presented a paper that proposes to improve the coordination of European economic policy. The paper is based on the so-called Five presidents report from last June (see here). The Commission recommends coordination to take place through national committees. These committees should assess the evolution of competitiveness at national level in each of the member states and make suggestions for improvements (the paper can be found here).
This EU proposal is an important document, because it shows that the Commission is taking the economic divergences between countries very seriously now. The EU Commission writes that „It is recommended that each euro area Member State establishes a national body that monitors its services and its policies in terms of competitiveness. This would prevent economic divergences and increase the identification of necessary reforms at the national level.“ These national institutions, which should be independent from party politics and national public institutions, should „assess whether wages develop in line with productivity,“ [...]