Talks on free movement of labour set to be hard work

Date: 11/11/1999

By Simon Coss

THE usual 'rule' of the applicant countries asking the EU's existing member states for extra time to comply with Union laws is likely to be reversed when it comes to the question of free movement of workers.

Terrified at the thought of a wave of cheap east European workers flooding their national labour markets, EU governments are almost certain to insist on restricting the ability of citizens from the candidate countries to seek employment within the Union's existing borders in the immediate aftermath of enlargement.

“The question of granting transition periods is becoming a normal part of the enlargement negotiations. However, in this case, it is likely to be the Union's existing governments which will be calling for extra time rather than the applicants,” explained one diplomat.

The precise details of any such transition deal have yet to be thrashed out, as formal talks on free movement of workers will not get under way in earnest until early next year.

But EU diplomats have already suggested three possible scenarios for managing the Union's labour markets after enlargement.

In all three cases, experts stress that any moves to restrict free movement would be temporary and that citizens from applicant countries must eventually be allowed to work wherever they want in the EU, as the right to free movement is one of the Union's fundamental principles.

The first transition scenario is the most drastic and would essentially amount to a blanket ban on the right of central and east Europeans to work within existing member states for a set period of time.

The second option is to adopt a 'sector-by-sector' strategy. Under this approach, EU governments would place restrictions on central and eastern Europeans seeking employment in specific industries - such as, for example, the building trade - where domestic workers could face particular pressure from cheaper foreign competition.

The final suggestion is to place no restrictions on free movement at the outset, but to draw up 'safeguard' legislation which would allow the Union to impose such measures later if problems arose after enlargement.

Whichever solution member states opt for, it is certain that the negotiations on free movement will be some of the most difficult in the entire enlargement process.

Several EU governments have already signalled that they will refuse to approve any of the applicants' membership bids until this issue is settled to their satisfaction. Such statements should be taken seriously, as decisions to allow new countries to join the Union must be agreed unanimously by all the EU's existing member states.

“Some governments have indicated they would accept a more laissez faire approach and would be prepared to see how the situation develops before considering a possible transition period, but we want this question to be settled definitively before enlargement takes place,” said one Austrian diplomat.

Vienna has always expressed concern about the free movement of workers because its long border with the applicant countries puts it at the greatest risk if there is an influx of cheap labour into the Union once new members join. Its public statements on the issue are almost certain to be even more hardline in the future, following the success of Jorg Haider's far right Freedom Party in the country's general election last month. The party is now the second largest force in Austrian politics, notching up big gains by campaigning on the slogan 'Austria for the Austrians'.

Germany too has expressed particular concern about the risk of a flood of cut-price labour onto EU markets. The Berlin government is one of the most ardent champions of enlargement, but insists this issue will have to be tackled to address public concerns that admitting new countries into the Union could pose a threat to existing EU citizens' livelihoods.