This is a necessary condition to (i) bring our workers’ wage levels closer to European standards; and (ii) finance the welfare state in a context of unfavourable demographic developments. The challenge is thus one of activating the ‘levers’ of employment and productivity. I will briefly highlight the four most critical ones. 1. First, investment.
The global commodities boom, which has been stimulated by the emergence of the Chinese and Indian economies on the international scene, has been an important offset to the deflationary effects from their low-priced goods and services.