[yummyfajitas]

Weird, a "right-wing government" pushing a left wing (i.e. explicitly Keynesian) economic plan. It's awesome that your politicians can get past petty partisanship!

Keynesian theory says that to improve the economy (read: put prideful workers back to work and increase outputs), you need to lower real wages. It also postulates that nominal wages are sticky - hence the standard solution for Keynesians is creating inflation to reduce the real value of the same nominal wages. I.e., instead of workers getting 5% fewer Euros, they instead get the same number of Euros but the value of each Euro is reduced by 5%.

For countries on the Euro, inflation isn't possible, so the only solution is to fix nominal wage stickiness.