The increase in the minimum wage in Greece compensates for inflation, without affecting public finances, Economy Commissioner Paolo Gentiloni said during a press conference on the European Commission’s autumn economic forecasts.

“With nominal wages rising and inflation slowing, real earnings of workers are expected to turn positive in 2023 after contracting in 2022,” the Commission’s report on Greece says.

Asked to comment on this remark, Paolo Gentiloni said that the Commission is taking into account the government’s decision to increase the minimum wage by 9.4% at 780 euros per month, saying:

“We all know that these increases are being made to offset rising inflation, so we don’t expect a spiraling price and wage increase based on current market developments.”

The Economy commissioner also noted that in many European countries there is room for wage increases and to cover purchasing power. This does not necessarily affect public finances, as room for maneuver determined by the high level of profits in several sectors of our economy is used.