For more than half of the private sector employees in the euro area, inflation does not play a formal role in wage setting, but can be an important factor in wage negotiations and in some countries there is renewed pressure to introduce or increase the prevalence of indexation clauses.
The point is that once you have an IFC operating in both the domestic economy and offshore, there could be negative consequences from a sudden reversal of capital; obviously regulation would need to mitigate these risks.