reading the latest remarks by Mr Schäuble concerning the ongoing wage negotiations in German metal sector could give such an impression. (Although politics shouldn't get involved in those negotiations! <autonomy of unions and management) As many times before it was brought to the author's attention by a fellow user of Twitter; this time professor @ewaldeng deserves credit for it.
Here is what German newspaper Frankfurter Allgemeine Zeitung has on this story
Schäuble: Die Löhne können kräftig steigen
obviously based on the story by Focus:
IG Metall droht erneut mit Streiks –Schäuble für Lohnplus
"Finance minister Wolfgang Schäuble (CDU) was promoting a significant increase in wages in current wage negotiations. "It is alright, if wages currently increasing more significantly than in other EU-countries.", Schäuble said to 'Focus'. Germany has made its homework and could afford higher pay settlements better than other countries. "but we must be cautious not to exaggerate. We must keep the right balance." " (Focus excerpt)
"Außerdem komme man mit höheren Lohnabschlüssen in Deutschland den Forderungen anderer Länder entgegen. "Diese Lohnsteigerungen tragen auch zum Abbau von Ungleichgewichten innerhalb Europas bei", sagte Schäuble. " engl.: "Furthermore with higher wage settlements in Germany the country meets demands of other countries. "Those wage increases also do their part for reduction of imbalances within Europe", Schäuble said." (Die Welt excerpt)
compare this to the latest statement by Mr Krugman in German weekly "Der Spiegel" :
"Der Zustrom des Kapitals nährte einen Boom, und der führte zu Lohnerhöhungen: Während der ersten zehn Jahre nach der Einführung des Euro stiegen die Lohnstückkosten (der Lohn gemessen an der Produktivität) in Südeuropa um 35 Prozent, in Deutschland dagegen nur um 9 Prozent. In Südeuropa wurde die Industrieproduktion daher immer weniger wettbewerbsfähig, was zur Folge hatte, dass die Länder, die viel ausländisches Kapital anzogen, immer größere Außenhandelsdefizite anhäuften."
engl.:"The influx of capital was feeding a boom and this led to higher wages: During the first ten years after the introduction of the Euro the unit labor costs had risen (the wage measured against productivity) in Southern Europe some 35%, in Germany however just around 9%. In Southern Europe the industrial production has lost competitiveness, what led to the result, that those countries which attracted much foreign capital accumulated ever bigger foreign trade deficits." (Spiegel excerpt)
So it seems that Mr Schäuble listened somehow to Mr Krugman, just as Mr Sarkozy seemed to have somehow listened to Mr Roubini, when he demanded a depreciation of the Euro against the Dollar during his reelection campaign ;-)
May 6th 2012 Paul Krugman: German Adjustment
May 6th 2012 Schäuble für klares Lohnplus
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