ECB chief Trichet warns Germany against excessive pay rises

BERLIN - European Central Bank President Jean-Claude Trichet has warned against excessive pay rises in Germany, as the country’s economy begins to grow strongly, in remarks published Saturday in the newsmagazine Focus.

By (DPA)

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Published: Sat 24 Feb 2007, 5:02 PM

Last updated: Sat 4 Apr 2015, 8:30 PM

‘Pay restraint remains important,’ Trichet said. ‘This is true not only for Germany, but for the whole of Europe.’

Trichet pointed to subdued pay rises over recent years as ‘one of the most important factors’ in increasing the number of available jobs and reducing unemployment.

The German economy grew 0.9 per cent in the fourth quarter of 2006, led by a substantial rise in exports. Business confidence remains buoyant and the stock market is rising steadily after years in the doldrums.

Trichet said the introduction of the euro had proved positive for the 13-nation euro-zone, pointing to 12 million new jobs since its introduction eight years ago.

‘We have contained inflation since the euro was introduced,’ he said.

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