Measuring European Competitiveness at the Sectoral level

This book develops a new approach for estimating the way in which labour costs reflect cost competitiveness. Conventionally, unit labour costs (a standard measure of cost competitiveness) are calculated as indices, without regard to the relative levels of wage costs. To remedy this, the authors develop the concept of the ‘equilibrium wage’, which corresponds to the level of wages when the returns on capital in different regions and sectors are equalised. A wage competitiveness indicator is thus calculated as the ratio of actual to equilibrium wages. The book presents empirical evidence of equilibrium and actual wage developments for country aggregates and for economic sectors. Within the euro area, five countries are above equilibrium levels, three (including Germany) are close to equilibrium, and eleven member states (mainly in central and eastern Europe) have massively undervalued wages. The data for sectoral competitiveness seem to reflect in part sectoral specialisation, but the picture varies between sectors, countries and time periods

Swine flu: lessons we need to learn from our global experience

There are important lessons to be learnt from the recent ‘Swine Flu’ pandemic. Before we call it a pandemic, we need to have appropriate trigger points that involve not only the spread of the virus but also its level of virulence. This was not done for H1N1 (swine flu). We need to ensure that we improve the techniques used in trying to decrease the spread of infection—both in the community and within our hospitals. This means improved infection control and hygiene, and the use of masks, alcohol hand rubs and so on. We also need to have a different approach to vaccines. Effective vaccines were produced only after the epidemic had passed and therefore had relatively little impact in preventing many infections. Mass population strategies involving vaccines and antivirals also misused large amounts of scarce medical resources