Admittedly, it has not managed to escape the general trend of declining labor income shares that had started in the 1980s. As to household wealth, information collected in the Eurosystem’s Household Finance and Consumption Survey points to disparities that are even more pronounced than inequalities in income.
Countries will be required to meet their commitments under the excessive deficit procedures. Consolidation of public finances should start in 2011 at the latest and will have to exceed substantially the annual adjustment of 0.5% of GDP set as a minimum requirement by the Stability and Growth Pact. A strong focus on expenditure reforms is needed.