06-05-2004 (updated: 21-05-2007 ) Languages: Français | DeutschPrint Email Facebook Twitter LinkedIn WhatsApp Telegram In the EU-25, the free movement of workers across borders will remain restricted. Based in part on research provided by ECAS, EURACTIV offers a detailed overview of the different ‘transitional arrangements’ the Member States will implement up until 2011. The EU’s enlargement is expected to prompt European companies to look eastward with their new investments and production lines, while the labour force in the accession countries is expected to look West for better jobs. Will the EU-15 change the EU-10, or vice-versa? The EU-15 states have committed themselves to increasing the rights of access to their respective labour markets and will refrain from taking away rights which have already been granted. Under a ‘preference rule’, EU-10 citizens must be given priority over people from non-EU countries in case there is a vacancy in any of the EU-15 job markets. In the EU-10, labour markets are significantly cheaper than in the EU-15. After enlargement, many businesses in the EU-15 are likely to consider relocating all or part of their operations to the new European countries where generally lower corporate tax rates come coupled with a relatively more competitive and entrepreneurial labour market. Based on historic precedents, it appears justified to expect that post-enlargement labour movement will be limited. The EU’s previous enlargements also involved low-wage economies, but the accession of these countries did not result in mass labour migrations. The entry of Britain, Ireland and Denmark in 1973 brought in proportionally more people to what was then only a six-nation bloc (the EEC) and it passed off fairly smoothly. Meanwhile, UN data indicate that without immigration, Italy – for one – is set to lose about a third of its current population by the middle of this century, and Poland – the largest accession state- is expected to lose 15 per cent of its citizens. Even with the current level of immigration and the enlargement by ten new Member States, the EU will have fewer citizens in 2050 than it does today. Nutshell scenarios for individuals seeking work from EU-15, in EU-15: No change from previous practice. Since Cyprus is not affected by the ‘transition arrangement’, it also can be considered part of EU-15. from EU-10, in EU-15: see individual countries under Positions. from EU-15, in EU-10: see individual countries under Positions. from EU-10, in EU-10: None of the new Member States have requested a ‘transitional period’ in this bracket. However, these states each have the ri ght to subsequently invoke ‘safeguards’. Workers who move to other countries within the EU-25 generally have the right to: take up a job without a work permit (subject to the ‘transitional arrangements’) receive equal treatment in employment matters, social and tax advantages as compared to nationals bring along family members, irrespective of their nationality full co-ordination of social security full mutual recognition of professional qualifications PositionsThis overview of measures is originally based on a paper prepared by the European Citizen Action Service (ECAS), with additional research performed by EURACTIV. Austria and Germany: Transitional measures will be imposed not only as regards the free movement of workers but also against the freedom to provide services in selected (country-specific) sectors. The requirement for work permit will remain in force also for those citizens of new Member States who will seek to deliver services across the border and will want to bring their own employees along. In Austria, only those employees who have been legally employed in the country for more than 12 months (at the date of accession of their country to the EU) will be eligible to move freely. In Germany, the previously established bilateral employment quotas will remain in force for at least two years. Austria and Germany are expected to apply the longest possible 'transition period'. In the EU, labour costs are among the highest in Austria and Germany. Cyprus: The Mediterranean island is exempted from the restrictions on labour mobility. Malta: The citizens of Malta are free to work in any of the EU-15 countries. Meanwhile, the island nation of 400,000 has the right to apply restrictions ('safeguard') on inbound labour migration for up to seven years. The Netherlands: During the enlargement negotiation phase, the Dutch government seemed to be inclined to refrain from imposing restrictions. However, in early 2004 the government decided to tighten its entry policies. The authorities have pledged to speed up work permit applications for employees from eight new Member States (minus Cyprus and Malta, as their citizens do not require a work permit). The fast-track procedure applies to those sectors of the Dutch labour market where a shortage of workforce has been identified. In these sectors the employers will not be obliged to furnish proof that a Dutch or EEA citizen could not be found to fill the vacancy. The Netherlands has also decided to consider tightening its entry policies if over 22,000 workers per year arrived from the eight new Member States. Finland: Helsinki will continue to enforce 'transitional arrangements' for at least two years. The rule of thumb will be that work permits will be granted only if a Finnish national cannot be found to perform the given job. Cyprus and Malta will be exempted from the restrictions, and so will seasonal workers and students seeking to work part-time. Access to the labour market for EU-8 citizens will not be restricted if they reside in Finland for some purpose other than employment (ie entrepreneurs, family members of employees and students). Neither will the transition period legislation apply to those who have already lived and worked in Finland for more than a year or to new EU citizens who would be entitled to work if they were citizens of third countries. The 'transition arrangements' will not affect the free movement of labour within the framework of the freedom to provide services. Denmark: For at least two years, 'transitional arrangements' will be imposed. Only full-time workers will be entitled to a work permit, which will also be conditional on the granting by the Danish Immigration Office of an official residence permit. Citizens of Cyprus and Malta are subject to the same rule s that apply to other EU-15 citizens. The employees from the EU-8 states will not have immediate access to the country's welfare schemes. The restrictions apply to wage-earners only - all EU-10 citizens are free to establish independent businesses in Denmark. France: Paris intends to maintain 'transitional arrangements' for five years (a minimum of two years) after enlargement. However, the procedures are expected to be flexible depending on the sector or region concerned. The restrictions apply to wage-earners only, while students, researchers, self-employed persons and service providers are exempted. Spain: Madrid will apply restrictions for a minimum of two years. Further details of the restrictions are forthcoming. Portugal: By and large, Portugal is expected to follow in the footsteps of Spain. The Portuguese government has already set an annual limit of 6,500 on immigrant workers from all nationalities. Italy: Italy will impose an immigration quota of 20,000 per year from the EU-8 (exceptions are Cyprus and Malta). Sweden: The country will apply no restrictions on immigration from the EU-10 countries. The Swedish government expects to see around 10,000 job applicants from Eastern Europe (the respective figure was 6,000 in 2002 and again in 2003). Under standing regulations, several hours of paid work are enough for an individual to be granted a work permit. Czech Republic and Slovakia: Workers from the EU-25 states will face no restrictions in the Czech Republic and in Slovakia. Poland: Warsaw will apply reciprocal measures, under which Poland will only allow Irish and British citizens to work freely in the country. The plan is for Poland to oblige citizens of the other EU-15 states to obtain a work permit (citizens of Denmark, the Netherlands and Sweden can expect easier terms, while people from Austria and Germany will face additional limits). Belgium, Greece, Luxembourg: These Member States will apply restrictions for a minimum of two years. United Kingdom: The UK will not be imposing 'transitional arrangements'. At the same time, the country will oblige immigrant workers to register with the Home Office under a new "Workers Registration Scheme" and to obtain a worker's registration certificate. Cyprus and Malta citizens are exempted. No restrictions will be placed on self-employed as well as family members of EU-8 nationals who already have the rights to work in the UK. However, EU-10 access to the UK's welfare benefits will remain limited. Ireland: Ireland will open up its labour market to the citizens of the EU-10 states. Hungary: Budapest will impose labour restrictions on a reciprocal basis over the whole seven-year period. The measures will not apply to the citizens of the EU-10 states. A recent study by the Dublin-based EU-agency European Foundation for the Improvement of Living and Working Conditions said that even under conditions of full freedom of movement, migration from all new Member States to all 15 "original" Member States would be likely to be about 1 per cent in total of the working age population of the new Member States over the next five years. According to the workforce management company <strong>Manpower UK, "Contrary to much speculation, [enlargement] is unlikely to result in a flood of migrant labour from the East to the West, however there will be an opportunity for employers to tap into new pools of labour from new Me mber States." The European Citizen Action Service (ECAS) believes that the EU-25 should commit themselves to end the transitional period for free movement of workers as quickly as possible, and within two years at the latest. According to ECAS Director Tony Venables, "These transitional measures are a virus which can undermine the internal market across the 25 unless the contagious element is stopped now". Attending the festive 3 May 2004 session of the Parliament, former President of Poland Lech Walesa spoke out against the EU-15's restrictive measures. "This is communism", he said, asking, rhetorically, "How can you come up with such an idea?" BackgroundThe EU's biggest enlargement to date on 1 May has meant an instant population growth of 75 million and has also boosted the size of the aggregate economy of Europe to 850 billion euro, roughly on a par with that of the US. In principle, the EU's enlargement by ten new Member States (EU-10) means that each one of the Union's 450 million citizens now has the right to live and work in any of the 25 Member States (EU-25). However, in practice the majority of the original Member States have imposed restrictions on their employment and welfare systems driven by fears of large-scale labour migration from Central and Eastern Europe. At the same time, the restrictions do not apply to the EU-10 citizens' right to live and travel freely throughout the EU. All the EU-15 Member States have the right to require work permits from citizens of new Member States for at least the first two years. In this 'transition period', national rules rather than Community rules will apply. After 2006, the original Member States will review the labour situation and may extend the transition period for another three years. The 'transition period' should end five years after the 2004 enlargement, but it may be prolonged for a further two years in those Member States where migration might cause (or threaten to cause) serious disturbances of the labour market (referred to as 'safeguard' in the Accession Treaty). After a total of seven years (ie, not later than in 2011) no EU Member State will be allowed to require work permits any more from EU citizens.
