Financial Times FT.com

SPD seeks to kickstart growth with wage boost

By Patrick Jenkins in Frankfurt

Published: June 13 2005 03:00 | Last updated: June 13 2005 03:00

Senior members of Germany's ruling but battered Social Democrats have made a fresh attempt to pacify leftwing party rebels with a call on business to increase wages as a means of kickstarting domestic demand in Europe's biggest economy.

In a departure from past calls from the government for wage moderation, Hans Eichel, finance minister, said over the weekend that the time had come for German business to share some of the recent gains in profitability with employees.

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