News like this makes it much more difficult for the European Central Bank to cut interest rates:

German construction workers will get a 5.7% pay hike between now and June 2015, in a preliminary agreement cited by Reuters.

The pay hike applies to 760,000 workers and includes a 3.1% pay hike in June and 2.6% more in June 2015. In eastern Germany, workers will get an additional 0.7 percentage points to narrow the gap with western counterparts.