No. 266, Feb. 19 - 25, 2004

SECCIÓN EN ESPAÑOL

LABOR





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Come to the common market, but stay home

 



Come to the common market, but stay home

By Sanja Romic

Brussels, Belgium, Feb. 16 (IPS)— Introduction of restrictions looks increasingly more likely in order to block a surge of labour from new European Union (EU) states to the old after enlargement May 1.

Member states of the EU can restrict inflow of workers from eight of the ten new member states for seven years following enlargement. Only after 2011 will member states have to allow free movement of citizens, goods and capital.

The restrictions will not apply to workers from Cyprus and Malta, but can be enforced against the other eight: the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia.

British authorities decided last week to close doors to new EU labor. Germany and Austria which would be the main destination countries are also considering full restrictions. Denmark and Sweden plan restrictions on social security benefits for new labor, and for entry only with work permits for specific jobs.

Other countries are considering quotas. The Dutch government has set a quota at 22,000 workers until 2006.

Ireland is the only EU country following an open labor policy. It is expected to get the highest per capita number of new migrants. But precise estimates of the inflow of new migrants after May 1 will be difficult, say officials from the European Commission, the administrative authority for implementing EU decisions.

New members are putting in place their own restrictions on movement of labor from outside the enlarged EU. Hungary has announced a tightening of security measures along its 68 mile border with Ukraine, Croatia, Serbia, and Romania. Authorities say they fear an influx of workers indirectly from Poland and Slovakia. Unemployment in each of these countries stands at 18 percent.

With an average income substantially below the EU average in the new states, the pressure on employment on the existing member states is bound to grow, officials acknowledge.

“One should not criticize the member states exercising the right to impose restrictions if they wish to do so,” says Jean Christophe Filori, spokesman for Commissioner for Enlargement Guenther Verheugen.

The European Commission is planning counter-measures to boost growth and development within the new states, particularly in agriculture. The bulk of economic activity in the new member states was based on agriculture until the new moves towards service-based industries.

The low labor cost in the new member states can also boost manufacturing industries in these countries, leading to better employment, officials say. Fear of preferential treatment of domestic over migrant workers can also keep many workers from attempting to migrate in a rush, they say.

Eastern workers would want to head west to access the big EU internal market and its wealth, Nannette Ripmeester, a Rotterdam-based expert on labor mobility told the Brussels-based newswire Euractiv. On the other hand, eastern markets might appeal to western workers in view of new opportunities and lower living costs. This two-way process could finally lead to self-regulation of the EU market, Ripmeester said.

Expectations for the general economic situation after enlargement remains high within the present 15 member states, a European Commission Business and Economic survey in January 2004 shows.

Old members could gain an inflow of skills, capital, goods, an enlarged internal market, economic growth, and cultural and social enrichment. For new entrants, Community benefits for recognition of qualifications and coordination of social security systems would no longer be an unattainable goal.

Daniel Gros from the Center for European Policy Studies in Brussels says that a need to narrow the per capita GDP means that a degree of migration will follow. He does not expect a large shift of the labor population.