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European workers less mobile as recession looms

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Published 19 November 2008

The influx of workers from former Communist countries to 'old' EU members had an extremely positive impact on the host economies but internal migration appears to have reached its peak, according to a European Commission report published yesterday (18 November).

Contradicting the widespread and vocal fears expressed by many EU 15 citizens that these new migration waves would lead to a loss of jobs in their countries, the report indicates that there were no "serious disturbances on their labour markets". 

In fact, argues the Commission, mobile workers "have made a significant contribution to sustained economic growth over recent years by addressing labour market shortages without making heavy demands on welfare states," while there is "little evidence that workers from the new member states have displaced local workers or driven down their wages in a serious way, even in those countries where the inflows have been greatest". 

"These migratory flows are determined by the laws of supply and demand," concluded Vladimír Špidla, EU commissioner for employment, social affairs and equal opportunities. 

He went on to claim that "all countries that have opened their markets have found it to be a good thing," emphasising that free circulation of workers was a fundamental EU right. 

While Špidla did acknowledge that "in some cases, problems arose in terms of housing and childcare," he argued that there had never been a problem for the European labour market. 

Non-EU workers still outnumber internal labour migrants 

An accompanying Eurostat analysis, conducted in 2006, indicated that of the three million foreign immigrants to settle in an EU country, 40% were citizens of the EU 27. 

Therefore, a clear majority of migrants still came from outside the EU. The remaining 60% of foreign immigrants were almost equally divided between citizens of countries in Europe outside the EU 27 as well as Asia, America and Africa, with each category accounting for about 15% respectively. 

The countries with the highest net immigration were Luxembourg, Ireland, Cyprus and Spain, while the largest foreign immigrant groups within the EU were citizens of Poland (approximately 290,000) and Romania (around 230,000). 

Migration flows dry up as economies slow down 

Interestingly, the Commission report indicated that internal EU migration may already have reached its peak. 

For Špidla, the reasons for this is twofold: firstly, reductions of income differences between member states will slow down movement, as workers see less economic benefits in leaving their home economy. 

A second important factor was the current economic downturn, explained the commissioner. "Many go back or do not come in the first place if economic conditions become less favourable," said Špidla, concluding that the EU had in all likelihood "already reached a ceiling in terms of migratory flows".

EU countries in favour of a common immigration policy 

In a related development, a survey commissioned by the German Marshall Fund of the United States showed that a majority of EU citizens want immigration policy to be decided at EU level. 

However, there were a number of clear divergences between member states. The survey showed that while a majority of French, Germans and Italians were "ready to cede sovereignty to the EU to formulate common immigration policies," only 28% of Britons would like a common EU policy in the area. Opinion was split in the Netherlands and Poland. 

Background: 

Following the ten-country enlargement of the EU in 2004 (when eight former Communist countries plus Cyprus and Malta joined the bloc), three of the 'old' EU 15 lifted their labour market restrictions entirely: Ireland, Sweden and the UK. 

The rest kept controls in place, albeit with varying levels of restriction. The European Commission's report (18 November) is the first to provide detailed analysis of the impact of free movement of workers following enlargement.

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