Report on mobility highlights economic benefits of migrant labour

A recent report by the European Citizen Action Service reveals some interesting developments in relation to worker mobility following enlargement of the European Union in 2004. In addition to challenging some of the myths and fears associated with migration, the report outlines a number of recommendations relating to the free movement and residency of EU citizens.

To coincide with the European Year of Workers’ Mobility 2006, the European Citizen Action Service (ECAS) has released a timely report on mobility developments since the accession of the new Member States (NMS) in 2004. The study, ‘Who’s still afraid of EU enlargement’, reviews the current legal situation and how this impacts on the free movement of EU citizens, as well as offering recommendations to enable better labour migration. This is viewed as a prerequisite to addressing the EU’s demographic and economic problems. Moreover, the report addresses many of the myths often associated with migration, such as the risk of increased unemployment and the misuse of social welfare.

Developments since 2004

The accession of the 10 NMS in 2004 represented the largest ever wave of EU enlargement and generated many fears among citizens of the older EU countries (EU15). Among these concerns was a fear that westward migration from the NMS would lead to social dumping or lower standards of pay and working conditions. However, as the ECAS report notes, the accession of the NMS – resulting in 74 million new EU citizens – has led to some interesting and not necessarily expected developments.

Firstly, statistics show that the 2004 enlargement did not lead to the expected influx of migrant labour: in fact, the opposite can be observed. Prior to 2004, the number of citizens from the 10 acceding countries who were residing legally in the EU accounted for 0.3% of the total EU15 population; today this number is 0.2%.

Another interesting finding of the ECAS report concerns the impact of the Transitional arrangements for the free movement of workers from the new Member States (142Kb PDF). When signing the Accession Treaty in April 2003, a provision was included that allowed the EU15 countries to maintain – for a period of time – existing legislation governing access to labour markets. However, the report reveals the lack of a strong correlation between the existence of strict laws restricting access to labour markets and actual migration flows from the NMS. This is best illustrated by the German situation. Although Germany continues to apply the provision in Article 18 (1) EC Treaty regulating the free movement of EU citizens, it remains the country of choice for many migrant workers; as a result, it has seen more NMS nationals settle within its borders than some Member States not strictly applying the 2003 Treaty transition provision.

The case of Sweden, in particular, underlines the complexity of understanding NMS-related migration developments since 2004. Although Sweden allows unrestricted access to its labour market welfare system, it has not become a centre for what is referred to as ‘welfare tourism’: the notion of NMS nationals taking advantage of the country’s welfare provisions.

In short, the report finds that migrant labour does not constitute the threat that it was supposed to represent in terms of increasing unemployment and lowering social standards. In fact, migrant labour is shown to be an excellent resource in managing increasing skill shortages in the EU15. German employers, for example, have suggested asking their government to relax its labour market restrictions.

ECAS recommendations

In light of the ECAS findings, the report makes a number of recommendations that Member States should consider in relation to migrant labour. Among these suggestions are the following:

• to lift the transitional arrangements, namely the strict application of Article 18 (1) of the EC Treaty regulating the free movement of EU citizens;

• to collate reliable data on migration and disseminate it among the public, in order to dispel the myths associated with migration;

• to improve what the report calls the ‘welcoming attitude’ of Member States, in particular emphasising the importance of migrant labour;

• to stop the exploitation of migrant labour, giving equal pay for equal work. Protecting migrant workers’ rights should also involve trade unions;

• to foster the integration of migrants, while migrants should also be encouraged to prepare themselves for the challenges they face;

• to promote ‘circular migration’ through job creation measures in the NMS in an attempt to help migrant workers return to their home country with their newly acquired experience and skills.

Commentary

The EU15 Member States, particularly those countries which continue to apply restrictive measures towards migrant labour, should seriously consider the findings and recommendations of the ECAS report. Who’s still afraid of EU enlargement draws upon a wealth of empirical data that clearly demonstrate the economic benefits of lifting such restrictions; the study also offers evidence to challenge negative misconceptions associated with migration.

Moreover, the full application of Article 18 (1) of the EC Treaty without the transitional provision would allow Member States to address the considerable problem of the illegal labour market: such a move would increase tax and social security revenues, as well as protect employees working under precarious conditions.

Michael Whittal, Technical University Munich for AWWW GmbH ArbeitsWelt – Working World