Old member states reluctant to open up for east European workers

BRUSSELS - As the Commission reviews transition measures by "old" member states against workers from eastern Europe, a surge has been reported in temporary agency workers from the East.

But leaders are still cautious about the possibility of next year lifting labour market restrictions applied to the newcomers.

The European Commission is currently gathering up comparable data on transition measures applied by twelve EU states against workers from eight countries that joined the bloc last May.

The information will be used for a special report on the free movement of workers, due in January. The paper will also include recommendations for further steps in the area of labour migration.

Member states are expected to decide by April next year, whether they will apply a second stage of restrictions, and top up their transition period for another three years, until 2009.

Although the commission's report is not binding, several member states confirmed at a recent meeting that they would wait for its wording and concrete figures about the actual movements on the EU's labour markets after enlargement last year, before deciding on possible changes in their approach.

Different experience across the EU

Officials from the UK, Ireland and Sweden appealed to their western European colleagues last week to follow their example and lift the barriers against the newcomers.

None of the three countries that decided to refrain from restrictions has encountered a major influx of new workers or cases of abuse of their social benefit systems.

Irish representatives noted they had recorded a boost in the country's employment, while they could see a potential for 400,000 more workers by 2010.

For the moment, Austria and Germany have made clear they do not intend to lift their barriers, because of their unemployment rates.

France has suggested it will follow the same strategy, although it has established bilateral agreements on seasonal work with several of the new member states.

On the other hand, Spain is reported to be interested in lifting the restrictions, while some member states argue they have put in place easy or completely automatic work permit administration.

Of the four countries that had set up quota schemes for new workers (Italy, the Netherlands, Portugal and Austria), Rome has said its limit of around 80,000 permits is only half full.

Social dumping

The posting of workers, as well as movement of service providers, has featured as a more significant problem to several "old" EU member states.

Countries like Denmark or Finland have reported less applications for work permits, but more complaints by national trade unions about cases of unfair competition by agencies supplying temporary workers from central and eastern Europe, with lower salaries and social benefits.

Some analysts argue this should be a reason to improve implementation of the rules on "posted workers" in the EU, rather than insisting on labour markets barriers.