European companies must give workers a bigger share of their soaring profit or risk igniting a “crisis in legitimacy” in the continent’s economic model, Germany’s finance minister warned on Tuesday.
Peer Steinbrück’s comments were part of a concerted attempt by Europe’s economic leaders in Brussels to persuade companies to share profit with workers as well as shareholders.
Joaquín Almunia, EU monetary affairs commissioner, suggested workers were not getting their full rewards from rises in productivity. “I don’t think this is a sustainable position.”
His concerns were echoed by Thierry Breton, French finance minister, who spoke about the need to “redistribute wealth created by companies” and by Jean-Claude Juncker, the Luxembourg head of the 13-country group, who said a “big debate” had started on sharing the fruits of Europe’s long-awaited recovery.
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