#AskTheExpert webinar: How to help workers struggling with inflation?

In this #AsktheExpert webinar Senior Research Manager Christine Aumayr-Pintar and Research Manager Ricardo Rodríguez Contreras will look at the impacts of inflation on real terms pay across Europe and how this is likely to develop in the coming months. Tadas Leončikas, Head of the Employment unit, will also speak about the broader societal implications of declining purchasing power and the role of public services in building resilience across the EU. The discussion will be moderated by Mary McCaughey, Eurofound’s Head of Information and Communication.

The European Commission's spring economic forecast projects that EU inflation will fall to 6.7% in 2023 from 9.2% in 2022, before easing to 3.1% in 2024. While inflation looks to have peaked for the foreseeable future, the European Central Bank has warned that inflation will remain too high for too long. This is particularly the case for core inflation, which excludes energy prices.

Eurofound's analysis shows that, while the risk of recession has subsided, inflation continues to erode the purchasing power of households, workers and consumers. Data published at the beginning of this year show that, despite significant increases in nominal rates in 2023, minimum wage workers in most EU countries are seeing their purchasing power decline, with increases in real terms expected in just a few Member States. A new report on Tackling rising inflation in sectoral collective wage bargaining shows that workers across sectors are experiencing declining purchasing power and that this has the potential to increase social conflicts, industrial action, and labour disputes. In the long-term this could potentially jeopardise the EU’s strategic goals for the twin green and digital transition.

Dealing with inflation has featured prominently on the political agenda, and governments have enacted extensive relief packages aimed at mitigating the impact of inflation on households and families, and on sectors. Fiscal measures, such as tax reductions, have been used extensively. These measures are usually temporary but have been extended regularly. Their long-term use may have an impact on social services, which provide vital support for all in society, and particularly those which are struggling financially.

Is there another way? Can workers receive the support they need without compromising on the effectiveness of public services? Our experts discuss Europe’s options.

More information:

• Registration form: #AskTheExpert webinar: How to help workers struggling with inflation?