Conclusions and Economic Policy Recommendations

Abstract

The aim of this study has been to outline labour market preconditions with which both the growth process in Europe as a whole and the convergence between the individual member states of the European Monetary Union can be stimulated. The analysis of wage policy in Europe has shown, however, that the course leading up to monetary union has not yet been completed. Even though Europe’s convergence process has been impressive in the last few years, some countries have not yet taken all the steps; what is missing in particular is a general European wage policy concept to adequately equip Europe for the monetary union. At present, wage policy is still based on too many different concepts for there to be no danger of regional imbalances with regard to growth and employment, provided the status quo is maintained. This could strengthen the call for regional transfers.