Monday, September 15, 2014

Gurría (OECD) urges Spain to focus their efforts on … – elEconomista.es

Gurría (OECD) urges Spain to focus their efforts on … – elEconomista.es

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The Secretary General of the Organization for Economic Cooperation and Economic Development (OECD), Angel Gurria urged countries like Spain to focus on increasing productivity to wages in the future after the “hard” work in Spain to carry out the necessary salary adjustment.

PARIS, 15 (EUROPA PRESS)

In the presentation of the September update its assessment report of the global economy, Gurría noted that Spain has been a “very important” setting the real wages, which in the case of some sectors has also resulted in adjustment of wages in nominal terms.

In this regard, the Secretary General of the OECD, which was recalled last week in Madrid introducing the report of the organization about the Spanish economy, he stressed that the organization has a very clear position on this issue.

So, noted for fifteen years in many countries, wages grew much faster than productivity, which has created a gap in competitiveness between Eurozone economies.

In particular, he noted that in countries such as Spain, Ireland, Portugal, Italy, Greece and France wages have grown consistently over the productivity, in contrast to that has occurred in other economies such as Germany, creating a gap between countries of up to 30%.

In this regard, said that the gap has not yet closed, but is producing “some convergence”, as Germany is helping to make it happen with higher minimum wages or nominal wages, which complements the “hard work” done in Spain to reduce nominal wages.

Gurría stressed that some countries should continue to wage adjustments, and some even start them, but in those that already there has been a “great fit” it is time perhaps to focus more on productivity.

“The only way in which we can see an increase in wages in the future is if they go hand in hand with productivity” because otherwise would repeat the story of previous years, said the general secretary of the OECD.

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