Wage inequality in Germany – What role does global trade play? Policy Brief #2015/03

Wage inequality in Germany has increased significantly since the mid-1990s. The intensification of international trade relations is a frequently cited cause for this issue. However, an empirical study revealed that global trade can only directly explain around 15 percent of the increase in wage inequality in Germany. Primarily, the growing heterogeneity among companies in Germany plays a greater role – especially within industries. The decline in collective bargaining is the primary company-specific driver of wage inequality. Nevertheless, protectionist measures would not be effective for achieving greater wage equality.

Duel between the EU and Argentina: Weapons in the EU Arsenal. CEPS Commentary, 13 September 2012

Relations between the European Union and Argentina are under severe strain. For years, the Argentinean government has been involved in a diplomatic dispute with the United Kingdom over the status of the Falkland Islands (Las Islas Malvinas to the Argentines). It recently decided to take advantage of Spain’s current economic weakness to attack a major Spanish investment in the country. On April 16th, the Argentinean government expropriated 51% of Repsol’s shares in YPF, a former state-owned oil company, which had been privatised in the early 1990s. This action provoked a public outcry in Madrid and beyond, especially in the European Commission. In this Commentary, we explore its longer-term impact on relations between the EU and Argentina.