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A consensus between Germany and France for slightly higher inflation in Germany, increase in German worker's wages, and wage restraint by unions in France in return for avoiding layoffs. This is a way to restore competitiveness of France after the balance was upset when German workers exercized wage restraint during the last decade, leading to France becoming less competitive with higher wages relative to Germany. Hourly wages in France estimated at 34 euros are 14% higher than in Germany.
Europe Moving Toward Small Steps to Promote Growth
New York Times 05/10/2012
France Moves to Make Labor More Flexible
Wall Street Journal 05/01/2012
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