EU ministers call for wage restraint
Amid reports of ever rising prices, many of them caused by extra costs on business of meeting EU regulations on everything from social costs to environmental legalisation.
As reported in Busines Standard The EU is suddenly becoming worried about inflation with annual inflation in the 15-member eurozone provisionally estimated to have risen to 3.5 per cent last month, a 16-year high and far above the European Central Bank’s target rate of close to 2 per cent.
In February the Commission predicted a 2008 inflation rate of 2.6 per cent - the highest since the start of European monetary union in 1999 - and growth of 1.8 per cent. But is expected to revise those figures to raise its inflation forecast and cut its economic growth forecast later this month.
So what is the EU government going to do about it? Well it obvious they are going to have to do something to keep the inflation levels down, perhaps they will start a massive burning of the regulations, thus freeing industry from EU imposed shackles, or perhaps not! it look as if the ones who will be asked to make cuts are the wage earners, Governments, employers and trade unions across the eurozone were warned on Friday not to negotiate wage deals that risk pushing inflation to ever higher record levels and punishing the poorest members of society. EU Regulations of course do not punish the poorer members of society.
In Britain, thankfully, not part of the eurozone yet! According to some figures what with EU regulations arriving at the rate of 3,500 a year, the cost to us of membership is £100 billion per annum or 9% of our economy. According to the 2005 Anual Report of the Government’s Better Regulation Task Force. David Arculus, its Managing Director says EU regulation is now our biggest industry.
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EU inflation, wage restraint, EU Reguations, Cost of EU
