The constant lowering of workers salaries in Germany in the last ten years, as motor of competitiveness of the country exports is the “structural cause” of the Euro Zone crisis, according to a report published Tues by the International Labour Organization (ILO). Internally, the situation caused, according to the document, the growing of inequalities at a speed never recently saw, not even in the period of annexation of GDR.

“The costs of labour in Germany have dropped in the last decade when compared with its competitors, putting the growing under pressure, with nefarious consequences to its public finances viability”, stresses the report published in the head of the ILO, in Geneva. Even worse, continues, “the countries in crisis could not use the exports path to compensate the weakness of domestic search as their industry cannot take profit of a stronger internal search in Germany”.

The situation does not come only from the labour policy of Merkel's consulate, that is being taken as model in all the Euro Zone and the Italian prime minister wishes to put into practice within one month. The ILO stresses that the origin is in the liberal reforms putted into practice in 2003 by Schroeder's government of alliance between the social democrats and the Greens. The report recalls that this reforms are based in the “reduction of lower incomes (…), namely in the services and new jobs, essentially based in the salaries”. At the same time, stresses, “few was done to improve competitiveness through a progression of productivity”.Therefore, the ILO report adds, “the policy of salary deflation not only has amputated  consumerism, that established in one percent lower than the verified in the rest of the countries composing the Euro Zone, in the period between 1995 and 2001, as conducted to a growing of inequalities at a speed never seen before, even in the shock after the reunification”.

Based on data from OECD, the ILO deducts that at the European level this frame “has created condition for a prolonged economic marasmus because the other countries see, each day more, the policy of salaries deflation as solution for their lack of competitiveness”.

The ILO analysis also considers that the salaries deflation contribution to create jobs in Germany “it not that clear” because “the recent success of exports is low due to this salary policy being more explained by the German exporters orientation towards the dynamic emergent markets”.

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