Experts warn Germany against minimum wage proposal

Experts warn Germany against minimum wage proposal
Updated on

Summary Economic advisers national minimum wage could harm economic growth.

BERLIN (AP) - The German government s independent council of economic advisers is warning against a proposal to introduce a national minimum wage, saying it could harm economic growth.

The expert panel is also criticizing as "backward-looking" proposals to cap rent increases and boost pensions that are part of coalition talks between Chancellor Angela Merkel s conservative bloc and the center-left Social Democrats.

The Social Democrats have made clear that introducing a minimum wage is essential for their participation in government.

The panel released its annual report to the government Wednesday, in which it predicted Germany s gross domestic product would increase by 0.4 percent this year and 1.6 percent in 2014.

The government s own forecast in October was for 0.5 percent growth in 2012 and 1.7 percent next year.
 

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