European Unions Warily Greet the Euro They Fear Fewer Jobs, Lower Wages and Pressure for More Productivity

International Herald Tribune | May 5, 1998| | Copyright

Brian Knowlton
International Herald Tribune
05-05-1998
It can come as a surprise to hear labor union spokesmen across the Continent expressing only guarded enthusiasm for the single European currency and the streamlined new Europe it is expected to bring.

Most economists, after all, agree that monetary union is likely to produce pockets of high unemployment in some regions and industries, at least during a transition period, and lead to acute bouts of labor unrest. Facing difficult times, governments will be unable to lower interest rates or fudge fiscal policy to stimulate economic and job ...

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