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The Commission admits to having no legal basis for the action to lower wages in Greece

For several months, the European Commission has insisted on the necessary reduction in wages in Greece. Already in October, in a Greek newspaper Kathimerini, Matthias Mors, representative of the European Commission, underlined that “the minimum wage in Greece is higher than that of the member countries of the European Union having the same standard of living”. The spokesperson for Commissioner Rehn, in charge of the Economy within the European Commission, echoed this refrain on Monday during the midday point, answering my question, "He thus compared the Greek minimum wage (at 725 euros ) to that of Portuguese which is lower, for a comparable standard of living, or the Spanish minimum wage (*).

normal pressure

For the spokesperson for Olli Rehn, the existence of pressure on the minimum wage in Greece is completely normal. " The European Commission is engaged with its partners in the Euro zone in an unprecedented effort, with the citizens of Greece. It is right and normal and good for Greece that there is an effort towards sustainable growth. Greece is a country that has lived beyond these means for a long time (...) with a loss of competitiveness. The normal consequence would have been bankruptcy. Europe has ensured unprecedented solidarity from its partners. I categorically reject the terminology that the Commission imposes anything. »

The Commission cannot act to set up a European minimum wage but can demand a reduction in wages
One can only be surprised to see the Commission so specific on its demands on the minimum wage in Greece, whereas it has so far always refused to enter into the wage debate. We remember the debate a few years ago, where it was not even a question of imposing a European minimum, but of obliging each State to have a minimum (fixed according to a ratio relating to its growth or its product raw interior). There is also Article 153 of the Treaty which restricts the power of the EU to harmonize wages.

The spokesman for Olli Rehn denied first of all that it was a question of harmonization of the salary. Moot point. But the main thing is not there. He was above all evasive on the legal basis that led to the action of the European Commission. The Commission does not act on the basis of the treaty but “on the basis of the memorandum concluded between Greece and the creditors”, he explained, referring me in a tone to this memorandum. In fact, after research, there is nothing so precise in this memorandum signed in August 2010, at least which gives such power to the European Commission.

Nothing in the MoU

The Commissioner's spokesperson has just admitted it in a quick exchange we had today. “There is no specific mention of lowering the minimum wage in the MoU." Confession a little late and very discreet.

The conclusion is therefore clear: There is therefore no legal basis for the action of the European Commission on wage cuts in Greece. This will in no way prevent the economic problem in Greece from continuing. But this poses both a serious problem of legality and legitimacy, which resembles what is called in law a misappropriation or abuse of power. And this also raises the question of the veracity of the information given by the European Commission in this troubled period, to say the least.

NGV

(*) This analysis is quite short. And is not entirely accurate. It is actually based on PPS data (purchasing power standard), and not in euros. And, according to 2009 statistics from Eurostat, we can see that the Irish minimum wage (1152) is much higher, and very close to the French minimum wage. Other data have been published by Eurostat for 2012 and previous years. They don't quite match. but allow comparisons to be made (in euros).

Belgium 1443,54
Bulgaria 138,05
République tchèque 310,23
Denmark -
Germany -
Estonia 290
Ireland 1461,85
Greece 876,62
Spain 748,3
France 1398,37
Italy -
Cyprus -
Latvia 285,92
Lithuania 231,7
Luxembourg 1801,49
Hungary 295,63
Malta 679,87
Netherlands 1446,6
Austria -
Poland 336,47
Portugal 565,83
Romania 161,91
Slovenia 763,06
Slovakia 327
Finland -
Sweden -
United Kingdom 1201,96

Nicolas Gros Verheyde

Chief editor of the B2 site. Graduated in European law from the University of Paris I Pantheon Sorbonne and listener to the 65th session of the IHEDN (Institut des Hautes Etudes de la Défense Nationale. Journalist since 1989, founded B2 - Bruxelles2 in 2008. EU/NATO correspondent in Brussels for Sud-Ouest (previously West-France and France-Soir).

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