Berlin - Calls for pay restraint as major European economies slip into recession are falling on deaf ears, with workers in numerous countries grumbling that they have gained few of the promised fruits of the last upswing.
Earlier in September, European Central Bank (ECB) President Jean- Claude Trichet hammered out a warning against "second-round effects in price and wage setting," telling eurozone citizens to put up with high world prices for fuel and food which are beyond governments' control.
Nice, France - EU finance ministers failed Saturday to agree on a proposal on reduced VAT rates in labour-intensive sectors such as catering or cleaning, saying its impact on jobs and on public accounts required further study.
At an informal meeting in the French seaside city of Nice, Germany headed a pack of countries which oppose the European Commission's plans.
Its finance minister, Peer Steinbruck, told reporters that about eight of the EU's 27 member states had sided with the German position.
Nice, France - The European Union's finance ministers were Saturday discussing plans to reduce VAT rates for restaurants and other labour-intensive sectors in a bid to create more jobs at a time of economic slowdown.
The proposal is opposed by those member states which worry that it would merely result in lower tax revenues and higher budget deficits.
At their informal meeting in Nice, ministers would also be reviewing how best to respond to rising inflation and lower-than- expected growth.
The issue was already addressed on Friday by the finance ministers of the 15 countries which share the euro.
Brussels - The finance ministers of the 15 countries which share the euro gathered in Nice on Friday to find ways of avoiding a recession and to prevent a repeat of the ongoing turmoil seen on the financial markets.
Ministers were set to discuss the latest economic forecasts of the European Commission, which on Wednesday cut its 2008 growth forecast for the eurozone to just 1.3 per cent.
Within the group, Germany and Spain are expected to experience a technical recession - which is defined as two consecutive quarters of economic contraction - while France and Italy will see their economies stagnate during the second half of the year.
Nice, France - The mandate of Luxembourg Prime Minister Jean-Claude Juncker as head of the group of countries that share the euro was extended by two years, European Union diplomats said Friday.
The decision was taken by eurozone finance ministers at an informal meeting in Nice.
Juncker, who is 53, first assumed the influential position in 2005.
The renewal of his mandate comes at a delicate time for the European economy, which is facing a slowdown and, possibly, a recession.
Tokyo - Japan's economy contracted at an annualized rate of 3 per cent last quarter, more than initially estimated, the government said Friday, indicating that the world's second-largest economy would not shake off its economic doldrums any time soon.
The government had previously estimated an annualized contraction in the gross domestic product (GDP) of 2.4 per cent in the April-to-June quarter.
The fall was the first for Japan in four quarters.
Berlin - Calls for pay restraint as major European economies slip into recession are falling on deaf ears, with workers in numerous countries grumbling that they have gained few of the promised fruits of the last upswing.
Nice, France - The mandate of Luxembourg Prime Minister Jean-Claude Juncker as head of the group of countries that share the euro was extended by two years, European Union diplomats said Friday.
Tokyo - Japan's economy contracted at an annualized rate of 3 per cent last quarter, more than initially estimated, the government said Friday, indicating that the world's second-largest economy would not shake off its economic doldrums any time soon.
