German Chancellor Angela Merkel has made it clear that a minimum wage is likely to be introduced.
Although Merkel’s Christian Democrats (CDU) have long opposed such a measure – the Social Democrats (SPD) are committed to the introduction of a base rate of 8.50 euros per hour.
Coalition talks are currently being held between the two parties.
Merkel told a meeting of business leaders: “I will try everything and the CDU will try everything to avoid the loss of jobs. But explaining the situation realistically, the SPD won’t conclude the coalition talks without getting a nationwide minimum wage introduced into law.”
Germany’s employers’ federation criticised the plans for the minimum wage and other new labour market regulations – saying they could endanger competitiveness.