ECB on the verge of the next rate hike – High inflation causes a shift in power

Frankfurt The European Central Bank (ECB) is once again at odds. This time, however, it is not the central bank council that is arguing heatedly, it is outraged employees who are causing unrest at the ECB headquarters. Because of the sharp rise in inflation, central bank employees are demanding higher wages. The situation is not without irony, as ECB President Christine Lagarde repeatedly warns of a wage-price spiral, i.e. a situation in which higher wages and prices continue to swing upwards.

The deputy head of the ECB union Ipso, Carlos Bowles, sees things completely differently: “Such statements weaken the bargaining power of the employees overall.” “Last year we were told to be patient as inflation will only be temporary, and now it’s at 10 percent and we’re losing even more.”