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Higher German wages would harm eurozone

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(Globalpost/GlobalPost)

A wide-scale rise in wages in Germany would not benefit other eurozone members, but would actually harm the single currency area as a whole, Bundesbank president Jens Weidmann said Monday.

"Given the relatively weak trading relations with peripheral European countries, they would barely profit from the reduced price competitiveness and increased consumption in Germany," Weidmann told the daily Frankfurter Allgemeine Zeitung in an interview.

"At the end of the day, the eurozone as a whole would be worse off," added the German central banker, who also sits on the European Central Bank's decision-making governing council.

Against the backdrop of a resurgence in the eurozone's debt crisis, a number of partner countries have called on Europe's top economy to do more to boost growth, notably via an increase in wages, to stimulate consumption.

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http://www.globalpost.com/dispatch/news/afp/130422/higher-german-wages-would-harm-eurozone