New data show annual labor-cost growth in the euro zone slowed to 3.1% in the second quarter, down from 3.3% in the previous quarter and substantially below the increases seen during the 2022–23 inflation crisis. European Central Bank data also indicate that negotiated wage growth is expected to remain relatively moderate, at roughly 2.6%–2.8% into early 2027. Policymakers have been watching collective bargaining closely for signs that higher energy costs could lead unions to seek larger wage increases.
See "Euro zone wage growth slows, only modest uptick seen", Staff, Reuters, September 16, 2026