Opening up the labour market

Published: 19 November 2008 y., Wednesday

Darbininkai stato namą
When the EU expanded in 2004, some of the 15 existing EU countries were worried they would be flooded by workers from eastern and central Europe.

So they were allowed to temporarily restrict access to their labour markets, making it harder for newcomers to work there. The same restrictions were imposed on Bulgaria and Romania when they joined in 2007.

Now it seems those fears were unfounded. According to a new EU report, many more workers have immigrated from outside the bloc than have moved from eastern to western Europe. What’s more, with the economic downturn reducing demand for labour, such labour flows are expected to decline.

There is little evidence that significant numbers of local workers have lost jobs to newcomers or seen their wages decline. On the contrary, workers from new member EU countries have been a boon to the “old” economies, relieving labour shortages in many areas.

The commission is therefore urging EU countries to lift any remaining restrictions and give new members full access to their labour markets. “The right to work in another country is a fundamental freedom for people in the EU,” said employment commissioner Vladimír Špidla. “I call on member states to consider whether the temporary restrictions of free movement are still needed given the evidence presented in our report today.”

Only Austria, Belgium, Denmark and Germany still impose labour market restrictions on the eight central and eastern European countries that joined the EU in 2004. But many member countries continue to restrict workers from Bulgaria and Romania. Lifting them would help avoid problems stemming from closed labour markets, such as undeclared work and bogus self-employment.

Today, nationals from the new eastern member states make up around 0.9% of the population of the western EU members. In 2003, the figure was 0.4%. By comparison, the percentage of non-EU nationals living in the 15 original EU countries has grown from 3.7% in 2003 to 4.5% today.

Most eastern EU nationals working in the west are from Poland, Lithuania and Slovakia, and their top destinations are Ireland and the UK, two countries that opened their labour markets straight away. Romanians tend to work in Spain and Italy.

 

Šaltinis: ec.europa.eu
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Bank DnB NORD increases its holdings in Lithuania

Bank DnB NORD A/S increasing its holdings in its Lithuanian subsidiary to 99.84 percent through acquisition of shares from minority shareholders. more »

AB Bank SNORAS will grant LTL 35 million for financing small and medium businesses

AB Bank SNORAS will grant LTL 35 million for financing the small and medium businesses on the exclusive conditions. more »

Obama rejects GM, Chrysler plans

Rejecting survival plans from both General Motors and Chrysler, President Barack Obama warned the ailing US automakers they could be forced into bankruptcy if they don't find a way to slash their debt. more »

Beer still recession proof?

Prevailing wisdom says when the going gets tough the weary go drinking. The demand for beer exceeds the demand for all other alcoholic beverages in USA. more »

Watchmakers want better times

Things have been moving slowly for Swiss watchmakers in recent months. The global economic downturn has hit the country's third most important industry hard. more »

GM CEO resigns

The move came a day before the U.S. government was due to outline new steps to help GM and Chrysler as part of the federal bailout. more »

Creativity key to a healthy economy

With the European year of creativity and innovation in full swing, leading figures warn against cutting back on research and development in times of crisis. more »

Markets rebound on better data

Wall Street has been looking for signs of a bullish comeback, and today's surprise news on the economic front revived a buying spree... started by Monday's 7% rally. more »

Five countries exceeding EU deficit limits

With the economic crisis eating away at public finances, budget deficits in five countries are expected to exceed the 3% of gross domestic product allowed by the EU. more »

China calls for new global currency

China is calling for a new global currency to replace the dominant dollar, showing a growing assertiveness on revamping the world economy ahead of next week's London summit on the financial crisis. more »