Internationale Politikanalyse International Policy Analysis Unit Internationale Politikanalyse International Policy Analysis Unit X Politik Info Jana Zitzler* Plea for a European Minimum Wage Policy In Germany, the debate on the introduction of a statu­tory minimum wage has been intensifying since 2004. While critics worry about the danger of increasing un­employment or the threat to free collective bargaining, advocates hope that a minimum wage would close wage policy gaps and reduce the number of working poor. In the United Kingdom – contrary to the expecta­tions of many – the introduction of a statutory mini­mum wage did not lead to massive job losses. Instead, the minimum wage has had a positive effect on em­ployment and the quality of work(“Initiative Mindest­lohn 2006”). Against the background of an increasingly inte­grated European economy and labour market deregu­lation, the question of European coordination of na­tional minimum wage regulations is coming up more and more. A European minimum wage policy can be regarded as an important instrument in preventing in­creasing wage differentiation and dramatic expansion of the low wage sector in the European Union, and positively influencing economic growth in Europe. An independent institution – on the model of the British Low Pay Commission – should accompany the gradual alignment of minimum wages at a uniform level. Such an institution could properly take into account condi­tions in individual EU states and be able to ensure po­litical feasibility. Minimum wage regulations in the European Union Within the EU, employment and remuneration are the competence of the member states and the social part­ners. However, the Commission makes recommenda­tions in so-called opinions in which the member states are asked to ensure the right of all workers to ade­quate remuneration, regardless of gender, handicap, ethnic origin, race, religion or nationality. In addition, the European Social Charter already contains a right to adequate pay. Minimum wage regulations are laid down in Europe in two ways: through agreement-based and statutory wage determination. In the case of agreement-based regulation minimum wages are laid down in wage agreements or general contracts of employment. However, due to their relatively low level of organisa­tion, the trade unions do not have sufficient negotiat­ing strength in all sectors to enable them to impose an agreement-based minimum wage. Therefore agree­ment-based regulation is lacking in the traditional low­* Friedrich-Ebert-Stiftung Bonn April 2007