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Euro zone rigour promises pain

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Euro zone rigour promises pain

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The extraordinary Libya summit will not eclipse a separate euro zone economic policy meeting. The euro zone countries item number one is a controversial Franco-German proposed harmonisation pact. One part of that is to abandon inflation-linked wage increases.

Euronews asked a family in the Brussels region what that would mean for their purchasing power.

Looking at salary statements, the couple said it would hurt them: “This one’s from January, indexed up by 1.5%, which is not negligible. As teachers, our salary is fixed, with increases every two years. There’s no extra for overtime worked. We don’t get a rise, don’t get a bonus.”

Germany and France are pushing the other euro zone partners to prove their economic reform commitment. But some countries have so far resisted such calls as to lift retirement ages and anchor strict limits on government borrowing in their constitutions.