Sliding wage scale

Scala mobile (German literally: escalator, mutatis mutandis Lohngleitklausel ) was an agreed upon in post-war Italy clause under which the wages should automatically follow the inflation. Specifically, was a quarterly subsequent adjustment of wages to prices of a defined basket.

The Scala Mobile was controversial from the beginning, since it was assumed that the clause a self-reinforcing inflation caused ( a so-called wage -price spiral ).

In 1977, the Scala Mobile was the subject of political disputes. The occasion was the knotting of the condition of the abolition of the scala mobile to the award of a loan from the World Bank.

1979 reached the unions after long labor dispute, the introduction of the scala mobile for the state employees.

After the rate of inflation in the early 1980s over 21 % ( 1980) had climbed to the political debate on its abolition intensified. That was not politically feasible. The government of Bettino Craxi defused, however, the adaptation rules, and achieved a reduction in inflation to about 5 % in the late 1980s. This was approved on June 9, 1985 by referendum with the approval of 54.38 % of voters.

On 31 July 1992, the Scala was mobile after long discussions and strikes again abolished. With the agreement of employers and trade unions renames the "Work Agreement" in July 1993 as priority areas for economic policy, the fight against inflation, the reduction of public deficits and exchange rate stability. The background to this agreement after decades of dispute was the desire for the participation of Italy in the European Monetary Union ( the introduction of the euro ).

• Inflation
• Economy ( Italy)