Lane (ECB) urges workers to reduce their salary demands and companies to seek fewer benefits

MADRID, 27 Sep. (EUROPA PRESS) -

The chief economist of the European Central Bank (ECB), Philip Lane, has asked eurozone workers to moderate their salary demands, while also urging employers not to expect the same benefits as other years due to the inflationary situation .

"Trying to completely protect workers from inflation through higher wages would lead to a large increase in costs for companies and second-round effects," Lane warned in an interview with the Austrian newspaper 'Der Standard'. .

According to the chief economist of the ECB, indexing wages to inflation or even exceeding it would be "self-defeating", since it would generate a longer period of time with high inflation, which would require a larger and "tougher" monetary policy response. .

However, Lane has also indicated that he shares the workers' criticism of the companies, which are raising prices and making higher profits. "I would seriously caution companies not to expect the same level of profitability in times of high inflation," she said.

"The collective message is important. In order to return to low inflation, we have to realize that corporate profitability will fall for a while and wages will also not keep pace with inflation for a season," he added.

Thus, the Irishman has indicated that living standards will fall in the short term due to high energy bills. "This will make people poorer and it will feel like a recession to many," he said. However, Lane estimates that in the future there will be a recovery of purchasing power and wages in real terms.