However, I should add that we are witnessing a gradual erosion of industry-wide pay bargaining at least in eastern Germany. And we also observe working hours becoming more flexible. However, further steps will have to follow so that a wage policy which is in line with market requirements can help to stimulate employment friendly growth.
Furthermore, the non-accelerating rate of unemployment, or NAIRU, could also fall in Germany. In the United States all the signs indicate that the NAIRU declined significantly during the long boom. According to the Bundesbank’s calculations, which may like other calculations be regarded with some degree of uncertainty, NAIRU has risen in Germany almost throughout the entire period since the end of the seventies.