This paper addresses the role of State in wage determination in different European countries over the last fifteen years. It shows, despite important national specificities, that the impact of State policy in wage determination, though indirect, is significant. State intervention, which depends on the intensity of the collective bargaining, in general serves to establish the framework of négociation and influence it. Moreover, State policy in such nations as Spain, United Kingdom, Germany, goes even beyond this to actually modify the structure of the labor market. Of particular use in understanding such developments are the theorical approaches of the labour market centered on the features of the labour contract and the failures of market. Such approaches, with their focus on labor market contracts and rules, lead to an analysis of how State policy can correct such failures. Still it is essen- tial to integrate the social and political dimension of state intervention on wages.