DG ECFIN undertakes descriptive and analytical work on the contribution of wage and labour cost developments to internal and external macroeconomic balances, as well as research on the interplay between wages and the personal and functional distributions of income.
Although wage-related decisions fall primarily within the domain of social partners, and the EU is not actively engaged in wage policy, it is a matter of fact that wage formation processes are of paramount importance for achieving various policy objectives, both at the euro-area and Member State levels. At the euro-area level, wage developments should be aligned with such macroeconomic requirements as price stability and employment-friendly growth. At the individual country level, nominal and real wage flexibility is key to rebalancing relative competitive positions. This is all the more true for euro-area countries that share a common monetary policy.
Consequently, monitoring and evaluating wages and unit labour cost developments is one of the areas covered by the activities of DG ECFIN. The contribution of DG ECFIN includes analytical reports and publications as well as notes for discussion within the Economic and Financial Committee, the Eurogroup, the Economic Policy Committee and its working groups, and the ECOFIN Council, as well as briefings, speeches and other inputs to the Commission work in general.