A Commission’s report finds that free movement of workers had a positive impact since enlargement

On 8th February 2006, the European Commission published a report on the «Functioning of the Transitional Arrangements set out in the 2003 Accession Treaty (period 1 May 2004-30 April 2006)». The Commission’s report presents data on labour movement from new to old EU Member States since enlargement. It aims at informing Member States in order to help them deciding on whether to continue with national restrictions on workers’ movement. According to the Accession Treaty, Member States have until 30 April 2006 to decide whether to lift such restrictions, which is the end of the first phase of the transitional arrangements.

The report shows that workers’ mobility from the EU new Member States to the old Member States has had a positive impact and has been quantitatively less important than expected. The Commission observes that where restrictions have not been applied (i.e. in UK, Ireland and Sweden), the economy grew and employment increased. The report also suggests that the 12 countries that applied transitional arrangements may have higher levels of undeclared work and self-employed work. The report indicates that national restrictions have had little direct effect on workers’ movement, and that workers’ movement seems to be ultimately determined by supply and demand of work in the different counties. The European Commission finally stresses that «freedom of movement of workers is one of the basic freedoms under the EC Treaty. The Commission recommends that the Member States carefully consider whether the continuation of these restrictions is needed, in the light of the situation of their labour market and of evidence of this report».

Documents:

 Report on the Functioning of the Transitional Arrangements set out in the 2003 Accession Treaty (period 1 May 2004-30 April 2006):

http://europa.eu.int/

 Article: Sergio Carrera, What does free movement mean in theory and practice in an enlarged EU?,European Law Journal,Volume: 11 Issue 6, Year 2005, Pages Number: 699-721

http://www.europeanlawjournal.com/current.asp

 Press Release IP/06/130:

http://europa.eu.int/

 MEMO/06/64 (FAQ on the Commission’s free movement of workers report):

http://europa.eu.int/

 Free movement of workers website:

http://europa.eu.int/