After decades of deepening economic integration across nations and regions, spurred by the rise of global value chains, the COVID-19 pandemic and the Russian invasion of Ukraine have srupted international production networks. The size and changing nature of these shocks exacerbate the risk of a reversal of international economic integration, referred to as 'geoeconomic fragmentation.'
Workers and employers bargain over the surplus income generated by an employment relationship. This column uses information about key events in Germany relevant for wage negotiations, like labour strikes and the introduction of a minimum wage, to pinpoint changes in bargaining power between workers and employers.