111. The German economy is entering what appears to be a period of severe strains owing to high labour costs and the high value of the mark. 112. The figures immediately sparked speculation of a rise in US interest rates, which had been dampened by figures on durable goods orders and labour costs. 113. The labour market remains tight, with unemployment virtually non-existent, pushing up labour costs. 114. The main points of the plan call for additional flexibility on wages, mobility and contracts, and a reduction in indirect labour costs such as social protection. |