As employees will demand that the portion of an increase in a firm’s profits to which they contributed be paid as wages, on a macro basis, the rate of increase in nominal wages will be the sum of the inflation rate and the rate of increase in labor productivity.
A mere 14 years ago, at the height of the euro crisis, we did not have the ESM. We did not have a European mechanism in place to deal with economic and financial stability issues. But many of you here today realised that we needed one.