European Central Bank chief Jean-Claude Trichet has clashed with European trade union leaders over demands for higher wages.
In an address to the annual congress of the European Trade Union Confederation in Seville in Spain, Trichet called for wage restraint to avoid the risk of inflation.
'Wage agreements should avoid wage developments that would eventually lead to inflationary pressures and harm the purchasing power of all euro area citizens,' Trichet told the congress.
He added that wage deals should take account of competitiveness, the high level of unemployment in many economies and productivity.
Trichet's calls came in the face of those from unions who demanded an increase of salaries across the continent. ETUC Secretary General John Monks said the ETUC intended to 'go on the offensive on pay'. Mr Monks said real wages had been flat in some key countries of the euro zone.
But he said it was not time to call for a European minimum wage, because of the big differences in wages between countries such as Germany and Poland.
