The EC demands a common mechanism for calculating the minimum wage in the EU
The European Commission proposed the adoption of a general mechanism for determining the level of the minimum wage, as well as a package of measures for stimulating employment through tax incentives, announced yesterday EurActiv. The peaks in the unemployment rates of over 20% in some EU member states, such as Greece and Spain, prompted Brussels to take drastic measures. As a result, the Commission proposed an increase in the minimum wage especially for EU countries where it is below the edge of poverty. Actually, Germany and Austria have not officially adopted a minimum wage level. It is determined on the basis of collective labour contracts concluded between trade unions and employers.
The idea of politicians to regulate the economy is absurd, commented for Klassa daily Chairman of BIA (Bulgarian Industrial Association) Bozhidar Danev. In fact, politicians are to be blamed for the economic crisis rather than businessmen. The minimum wage cannot be made equal without considering other economic factors, such as productivity rate, level of taxes, different pension systems or level of healthcare services. Bulgarian tax rates are not high, but they differ from the EU ones. The calculation of tax basis, as well as the amount of excise duty, which are aligned in some EU countries in terms of salary, are completely different in Bulgaria. In fact, the excise tax levied on fuels is the same, but the different people's incomes are different, thus equally burdening both the business sector and the Bulgarian citizens. "Should an increase in the Bulgarian minimum wage be adopted, this will result in the abroad outsourcing of the last profitable production sectors. This will lead to lack of investments and liquidation of businesses," was adamant Danev.
"It will not be easy to make a decision on a general mechanism for determining the level of the minimum wage," said Dimitar Manolov, Vice Chairman of the Confederation of Labour 'Podkrepa'. For Bulgaria, the adoption of the common mechanism will not bring any applicable reforms. In our country, there is a mechanism for determining the minimum wage, while some EU member states do not have such. In Germany, there is no effective government act for determining the minimum wage, but a common package of unemployment measures will also require the adoption of an official national standard, commented representatives of CL 'Podkrepa'.
Text: klassa.bg
Photo: klassa.bg