In response to the European Commission’s second phase consultation with social partners on possible EU action addressing the challenges related to fair minimum wages, the Lithuanian Free Market Institute is pleased to submit a position paper on the EC’s proposed policy options.
This position paper is presented in cooperation with the Center for Economic and Market Analysis (Czech Republic), Civil Development Forum (Poland), the Institute for Market Economics (Bulgaria), and the Institute of Economic and Social Studies (Slovakia).
The Position Paper argues that statutory minimum wage has adverse consequences for the most economically vulnerable workers, SMEs and the economy at large and fails to achieve desired policy objectives. The EU Member States should be allowed to make independent policy decisions, and clear-cut criteria should be applied in case of regulation in order to minimize negative effects. The Paper lays down arguments that minimum wage should not exceed 40 percent of a country’s minimum wage.
Full Position Paper on the European Commission’s Proposal on Possible Action Addressing the Challenges Related to Fair Minimum Wages ca n be found here.