Wage growth to 1,500 euros is a long shot

Economy
Mon, 8 Apr 2024 8:53 GMT
The objective to return the average monthly salary in Greece to pre-crisis levels – i.e. 1,500 euros – is an undertaking with an increased degree of difficulty, as the country’s structural problems, which are still worsening, and the international economic situation are not helping.
Wage growth to 1,500 euros is a long shot

The objective to return the average monthly salary in Greece to pre-crisis levels – i.e. 1,500 euros – is an undertaking with an increased degree of difficulty, as the country’s structural problems, which are still worsening, and the international economic situation are not helping.

The average salary will continue to move upward in the coming period also thanks to the pressure created by the adjustment of the minimum wage.

What is troubling has to do with the speed of the increase. To reach €1,500 by 2027, as the government’s official commitment envisages, an annual average wage increase of around 6% is required, which is seen as particularly high by those who believe wage increases should “keep pace” with the sum of inflation and labor productivity.

However, the increase in productivity is fueled by investments, and the investments are implemented mainly by the larger enterprises, which have greater margins to finance them. Therefore, we arrive at yet another structural problem of the country – revealed last week by the finance minister himself – which is the grave lack in the economy of companies employing more than 100-150 staff in Greece.

kathimerini

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