It is now a few years since the introduction of the common currency and Europe is still experiencing high unemployment The conventional logic attributes this problem to flaws in the labor market In this paper, we look at the changes that occur if trade unions and the central bank have different options to choose from in a climate of uncertainty In a single-stage game the most probable outcome is a high unemployment rate Results change dramatically if the game is repeated However this effect does not occur if the central bank puts a too high weight on price stability