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The German government will propose a comprehensive anti-crisis package to a summit meeting of European Union (EU) countries later this week. This includes a call for an end to wage indexation in a number of EU member states such as Belgium, Cyprus, Luxembourg and Malta where wages for many groups of workers are automatically indexed, the Federation of European Employers reports.
Concerns will also be expressed about pay bargaining in countries such as Portugal and Spain where changes in consumer prices are a major factor in pay negotiations and indexation is built into many collective agreements.
German Deputy Finance Minister, Jörg Asmussen sent the strongest signal yet that Berlin was prepared to give new powers to the Euro zone's Rescue Fund (EFSF) in exchange for fiscal discipline commitments by other euro members.
Asmussen told a conference in Frankfurt "we have always said that we would do all that is necessary to defend the stability of the Euro zone as a whole."