Germany, which usually sets the standard for price increases in Europe, has decided that it is necessary to shake its traditional fear of inflation.
After government worker salaries increased by 6.5%, metal prices have just gone up 4.3%, which is a reference point for all industry in Germany.
Already-high salaries will see the sharpest increases, aligning with comparable salaries in the rest of Europe. If the Germans push prices higher, countries like Spain, which has cut salaries and increase their ability to compete in the global marketplace, will be able to boost their selling power and market presence.
This is an unorthodox way to breath life into those who are doing all they can to survive without devaluing the euro.
