Brussels, 23/06/2004 (Agence Europe) - Reacting to the to the launch via the media, by the European Central Bank (ECB), for social partners to avoid inflationary effects of a second "consecutive round" of oil price hikes, the Secretary General of the European Trade Union Confederation (ETUC), John Monks, declared that it was not just salary structure but also monetary policy that had to react appropriately. This is why the ETUC is calling on the ECB to begin a constructive dialogue with European social partners to guarantee a combination of macroeconomic policies that ensured price stability while allowing for the still fragile recovery to assert itself further.
Fears of oil price rises affecting wage patterns are strongly exaggerated, declared the ETUC in a press statement. Recent statistics from the Commission testify to a sharp slowdown in wage growth. The ETUC also explained that in the context of a marked slowdown in the economy, collective bargaining in 2004 will focus on moderate salary objectives. The ETUC underlines that there is a very real danger of an erosion of purchasing power, which could lead to a new period of weak economic growth.