Keuschnigg: „Problem Countries Must Cut Wages“

CommentOpinion ♦ Published: May 12, 2012; 18:47 ♦ (Vindobona)

The designated director of the Austrian IHS (Institute of Advanced Studies) thinks that a drastic wage cut in Greece, Portugal and Spain is inevitable.

Keuschnigg: „Problem Countries Must Cut Wages“ / Picture: © Institut für Höhere Studien - Institute for Advanced Studies

Christian Keuschnigg, who will succeed Bernhard Felderer in June, explains that the Southern European economies must re-gain their competitiveness. Above all, wages must be cut therefore, he argues in an interview with “Die Presse”. At the moment, unit labor costs would be too high. In order to become more competitive, a higher productivity or lower wages are necessary. But raising…