Report from the Commission to the Council on the functioning of the transitional arrangements on free movement of workers from Croatia (First phase: 1 July 2013 – 30 June 2015)

The Commission presents this report in accordance with part 2, paragraph 3 of Annex V to the 2011 Act of Accession of Croatia. It is to serve as the basis for the Council’s review of the functioning of the transitional arrangements on free movement of workers, which must be completed before the end of the two years’ period since enlargement, i.e. by 30 June 2015.

The free movement of persons is one of the fundamental freedoms guaranteed by EU law. It includes the right of EU nationals to move freely to another Member State to take up employment and reside there with their family members; and the right to equal treatment on the basis of nationality in employment-related matters and in relation to tax and social advantages, membership of trade unions, public housing, and the access of their children to general education, apprenticeship and vocational training.

The 2011 Act of Accession allows EU-27 Member States to temporarily restrict the free access of workers from Croatia to their labour markets by making it subject to their national law. The Court of Justice of the EU has consistently held that derogations from fundamental freedoms should be interpreted strictly. The overall transitional period of seven years is divided into three phases (‘2-plus-3-plus-2’). Different conditions apply during each phase. The transitional arrangements end irrevocably on 30 June 2020.

The transitional arrangements only apply to access to the labour market. Once admitted to the labour market, a Croatian worker benefits fully from all other rights under EU law. The transitional arrangements do not affect the fundamental right of EU citizens to move and reside freely within the EU. They do not apply to self-employed workers who are established or provide their services within the EU. Austria and Germany are authorised to apply in certain sectors restrictions to workers posted by companies established in Croatia in the context of provision of services, and decided to make use of that possibility. There are no transitional arrangements for the application of EU law on coordination of social security schemes.

• Primary Source

EUR-Lex: COM(2015)233: Follow the progress of this report through the decision-making procedure http://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2015:233:FIN

EUR-Lex: SWD(2015)107: Commission Staff Working Document accompanying the report http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2015:107:FIN

ESO: Background information: Free movement: new Commission report on mobility of Croatian workers http://www.europeansources.info/record/press-release-free-movement-new-commission-report-on-mobility-of-croatian-workers/

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