Informal Ministerial Meeting of the EU Accession Countries

Similar documents
Fertility rate and employment rate: how do they interact to each other?

IMMIGRATION IN THE EU

European Union Passport

Evolution of the European Union, the euro and the Eurozone Sovereign Debt Crisis

NEGOTIATIONS ON ACCESSION BY BULGARIA AND ROMANIA TO THE EUROPEAN UNION

EuCham Charts. October Youth unemployment rates in Europe. Rank Country Unemployment rate (%)

65. Broad access to productive jobs is essential for achieving the objective of inclusive PROMOTING EMPLOYMENT AND MANAGING MIGRATION

European Integration Consortium. IAB, CMR, frdb, GEP, WIFO, wiiw. Labour mobility within the EU in the context of enlargement and the functioning

Public consultation on a European Labour Authority and a European Social Security Number

Options for Romanian and Bulgarian migrants in 2014

The global and regional policy context: Implications for Cyprus

OECD ECONOMIC SURVEY OF LITHUANIA 2018 Promoting inclusive growth

INVESTING IN AN OPEN AND SECURE EUROPE Two Funds for the period

Convergence: a narrative for Europe. 12 June 2018

Accession Process for countries in Central and Eastern Europe

Circular migration as an employment strategy for MENA countries

THE NOWADAYS CRISIS IMPACT ON THE ECONOMIC PERFORMANCES OF EU COUNTRIES

Central and Eastern European Countries : their progress toward accession to the European Union

ROMANIAN LABOUR MARKET VULNERABLE PERSONS AND VULNERABILITIES*

EUROPE DIRECT Contact Centre

Migration, Mobility and Integration in the European Labour Market. Lorenzo Corsini

After the crisis: what new lessons for euro adoption?

what are the challenges, stakes and prospects of the EU accession negotiation?

THE RECAST EWC DIRECTIVE

Migration in employment, social and equal opportunities policies

Poverty and Shared Prosperity in Moldova: Progress and Prospects. June 16, 2016

Employment and Unemployment in the EU. Structural Dynamics and Trends 1 Authors: Ph.D. Marioara Iordan 2

Migration and the European Job Market Rapporto Europa 2016

2nd Ministerial Conference of the Prague Process Action Plan

Enlargement of the European Union. Guide to the Negotiations. Chapter by Chapter

INDIA-EU DIALOGUE ON MIGRATION AND MOBILITY

ICEG EC OPINION II. Bulgaria s and Romania s Progress towards EU Accession by Péter Bilek

A2 Economics. Enlargement Countries and the Euro. tutor2u Supporting Teachers: Inspiring Students. Economics Revision Focus: 2004

European Employment Observatory. Ad-hoc request. Geographical labour mobility in the context of the crisis. Germany

The Outlook for EU Migration

summary fiche The European Social Fund: Women, Gender mainstreaming and Reconciliation of

STATISTICAL REFLECTIONS

The Outlook for Migration to the UK

The Economics of European Integration

Labour mobility within the EU - The impact of enlargement and the functioning. of the transitional arrangements

International Summer Program

Europe divided? Attitudes to immigration ahead of the 2019 European elections. Dr. Lenka Dražanová

DUALITY IN THE SPANISH LABOR MARKET AND THE CONTRATO EMPRENDEDORES

Identification of the respondent: Fields marked with * are mandatory.

THE DEVELOPMENT OF ECONOMIES OF THE EUROPEAN UNION MEMBER STATES IN THE PERIOD OF

Migration as an Adjustment Mechanism in a Crisis-Stricken Europe

Migration Challenge or Opportunity? - Introduction. 15th Munich Economic Summit

The application of quotas in EU Member States as a measure for managing labour migration from third countries

Settling In 2018 Main Indicators of Immigrant Integration

Negotiations with Poland, Hungary, the Czech

Europe in Figures - Eurostat Yearbook 2008 The diversity of the EU through statistics

Equality between women and men in the EU

Romania's position in the online database of the European Commission on gender balance in decision-making positions in public administration

Curing Europe s Growing Pains: Which Reforms?

EUROPEAN UNION UNEMPLOYMENT AND SOCIAL EXCLUSION

In 2012, million persons were employed in the EU

European Integration Consortium. IAB, CMR, frdb, GEP, WIFO, wiiw. Labour mobility within the EU in the context of enlargement and the functioning

Population and Migration Estimates

Common ground in European Dismissal Law

Globalisation and flexicurity

Review of implementation of OSCE commitments in the EED focusing on Integration, Trade and Transport

Euro area unemployment rate at 9.9% EU27 at 9.4%

Objectives of the project

September 2012 Euro area unemployment rate at 11.6% EU27 at 10.6%

The Social State of the Union

Public consultation on a European Labour Authority and a European Social Security Number

Labour market of the new Central and Eastern European member states of the EU in the first decade of membership 125

Population and Migration Estimates

The Application of Quotas in EU Member States as a measure for managing labour migration from third countries

Public consultation on the EU s labour migration policies and the EU Blue Card

Introduction: The State of Europe s Population, 2003

Labour Migration in Lithuania

Ilze JUREVIČA Ministry of Environmental Protection and Regional Development Regional Policy Department

2018 BAVARIA S ECONOMY FACTS AND FIGURES

European patent filings

Where is Europe located?

AGREEMENT BETWEEN THE KINGDOM OF NORWAY AND THE EUROPEAN COMMUNITY ON A NORWEGIAN FINANCIAL MECHANISM FOR THE PERIOD

Size and Development of the Shadow Economy of 31 European and 5 other OECD Countries from 2003 to 2013: A Further Decline

Data on gender pay gap by education level collected by UNECE

The European Union in a Global Context

Comparative Economic Geography

Migration and Demography

Limited THE EUROPEAN UNION, hereinafter referred to as the "Union" THE KINGDOM OF BELGIUM, THE REPUBLIC OF BULGARIA, THE CZECH REPUBLIC,

From Europe to the Euro. Delegation of the European Union to the United States

Measuring Social Inclusion

NFS DECENT WORK CONFERENCE. 3 October RIGA

Work-life balance, gender inequality and health outcomes

WHO Global Code of Practice on the International Recruitment of Health Personnel. Findings of the first round of reporting.

Migration Report Central conclusions

Asylum Trends. Appendix: Eurostat data

Asylum Trends. Appendix: Eurostat data

Asylum Trends. Appendix: Eurostat data

Asylum Trends. Appendix: Eurostat data

The European Union Economy, Brexit and the Resurgence of Economic Nationalism

COUNCIL OF THE EUROPEAN UNION. Brussels, 21 May /08 ADD 1 ASIM 39 COAFR 150 COEST 101

How has joining the European Union affected Romania s trade volume and. We chose Romania because they are one of the most recent additions to the

Migration information Center I Choose Lithuania

Migrant population of the UK

The best practices on managing circular and return migration in countries of origin, transit and destination

Topics for essays. Giovanni Marin Department of Economics, Society, Politics Università degli Studi di Urbino Carlo Bo

Transcription:

1 of 7 Informal Ministerial Meeting of the EU Accession Countries EU Enlargement and the Free Movement of Labour Geneva, June 14,2001 The on-going negotiations on the eastern enlargement of the European Union has brought into focus the need for coordination of the employment and social protection systems of the existing and the prospective members of the Community. The objective of is to reach as early as possible a stage where all the four fundamental freedoms guaranteed by the Treaty of the European Union, namely the freedom of movement of goods, services, capital and persons can be fully extended to the accession states. Because of its social and political dimensions, the most involved negotiations appear to be over the free movement of labour. Under the Treaty of the European Union Member States must guarantee all EU citizens the right to look for and take up employment in any other Member State and to reside with his or her family in the host country. They are to enjoy full equality of treatment as regards working and living conditions, including equal entitlement and access to social and education services, housing, and equal treatment in civil law and taxation. While substantial progress has already been achieved over the past few years in aligning the policies of the accession states to those of the Acquis Communitaire, the process is understandably complex as it involves no less than the coordination of social and economic systems that derived from different political philosophies, political and economic institutions, and administrative culture. Lake Balaton Conference At the instance of the Hungarian Government and the support of the Portuguese Government, the representatives of the 13 candidate countries for accession to the EU together with observers from 6 EU member-states and representatives of the European Commission, met in Lake Balaton in June 22-24, 2000 under the auspices of the ILO to discuss the employment and migration issues raised by the enlargement process. This was seen as an important step in the co-operation among the accession states many of which had expressed shared concerns and expectations about the likely impact of EU enlargement on their economies and what this implied for economic and social policy adjustments. Since the spring of 1999 the accession states have involved the ILO in identifying the implications of free movement of labour, especially on what will be required to align their respective labour and migration policies more closely with those of the Acquis Communitaire. The Balaton Conference had identified a number of important problems and issues in the area of employment and migration policy, which would need to be addressed by the accession states: Concerns over unemployment There was concern that at least in the short run accession to the EU would lead to a significant upswing in unemployment in the new Member States due to structural changes and trade imbalances. Increased competition from technologically more advanced and financially stronger foreign competitors in an enlarged market is going to add to the difficulties already being experienced by enterprises of the accession countries which are implementing structural reforms. In Central and eastern Europe most of the accession countries have already reduced direct subsidies to enterprises and removed indirect subsidies in the form of special prices for production inputs. These have put pressures on these firms to cut costs by eliminating redundancies. Downsizing of the work force has

2 of 7 followed the restructuring and privatization of large state enterprises in coal mining, steel production, and other manufacturing industries. This was also observed in the financial sector where the recent spate of mergers and acquisitions have led to decisions to reduce redundant branches and personnel. At the same time competition from imported foodstuffs has cut deeply into the market of large state and co-operative farms. While the situation varies considerably among the accession states, notably between the economies in transition on the one hand and Turkey, Malta, and Cyprus on the other, it is envisaged that certain strategies would be relevant to all. For example, employment promotion should include measures to stimulate the development of small and medium enterprises including start-up loans and subsidies, business support services, and management training. Active labour market policies aimed at the needs of specific groups in different situations would need to be pursued. Supply-side measures are clearly required to deal with the high unemployment among certain groups like women workers, the youth, and some minorities. The unemployment problem is most severe for young workers especially those with low levels of educational attainment and without any work experience. Rates of unemployment among the young workers were about double those of the national average in most countries. See Table 2. However, all workers with tertiary degrees have much lower rates of unemployment than the national average.reform of national education and training systems was deemed a high priority. Policy should strike a balance between labour market flexibility and employment security. While there is every justification to discouraging labour hoarding the states must respond to the need of the older workers who are laid off as a consequence of industrial re-structuring, privatization of large state enterprises, and strong competition from abroad. These older workers would need to be re-trained and equipped with skills needed in new enterprises and assisted to become more mobile internally. Moreover there would need to be specific measures to promote internal mobility of the population. At present internal mobility in most of Central and Eastern Europe is particularly low because of the high cost of housing in growth areas. It is expected however that the enlargement process itself would inject dynamism into the accession economies. Net foreign direct investments were already significant in some of the countries both in absolute and relative terms. See Table 3. Affiliates of EU companies in Central and Eastern Europe are presently employing an estimated 750,000 people. According to the European Commission about half of EU investments in the region over the past decade went to non-tradable sectors. Integration into a single market is expected to increase investments in other sectors as more opportunities are created for relocation of production in specific sectors of industry. Increased trade and investments in the context of intra-industry specialization should have beneficial effects on existing industries and enable them to create more quality jobs. The present EU working age population is approximately 250 million, and that of the accession states about 170 million, with Turkey accounting for over 64 million. Over the next 50 years the Central and Eastern European countries with the notable exception of Turkey are expected to either decrease or remain stable in population size. See Table 1. In all but four of the accession states negative population growth is projected over the next one and a half decades. Low fertility and greater longevity are combining to create an ageing population which suggests that the problem of unemployment would soon be viewed as one of having to extend the productive life of the workforce. Concerns over migration After the fall of the Iron curtain some 1.2 million moved to the EU from Central and Eastern Europe, but since then the flows have dwindled down, now involving mostly well educated and skilled young workers whose departure has already raised concerns over brain drain. From the 10 accession states in Central and Eastern Europe it is estimated that there are around 850,000 people currently in the EU

3 of 7 Member States, of whom 300,000 are permanently employed. These latter group represent just 0.2 per cent of the EU workforce. Moreover about 20,000 of these are self-employed. In addition there are some 2.6 million in the EU, especially in Germany, who originated from Turkey. In the short term it is expected that emigration will increase because of the demand abroad for highly skilled, and for young, well-educated workers, but the economically more advanced accession states are now themselves experiencing pockets of labour shortage in their labour markets and are attracting not insubstantial flows of foreign labour. Poland, for example, already issues some 10-15,000 work permits annually, mostly to managers from the west. The Czech republic has 111,000 foreign workers with work permits, including 61,000 Slovaks. Because cross-border migration by commuters and frontier workers are historically a large component of migration flows to and from the accession states more attention should be devoted to developing cooperation among them. As in the case of earlier accession states like Greece, Spain and Portugal convergence of real incomes with the rest of the EU as a consequence of economic integration is expected to reduce emigration pressures. The long-run labour migration potential from candidate countries has been estimated at roughly 1 percent of the EU15 population. This estimate comes from a recent study which projects decades of steadily declining flows, from an estimated 330,000 a year over the first 10 years, then declining to 145,000 a year. The Balaton Conference did recognize the need for policy adjustments to reduce discretionary powers of administrative units that may frustrate the intention of policy coordination especially on matters of admission, to guarantee all EU citizens equal treatment in working and living conditions, and to strengthen institutional capacities to manage migration. Some candidate states have yet to insure that their rules on crossing external borders are consistent with the third country agreements that the European Community has entered. Acceding states must ensure that their national legislation permits the employees of Community-based companies to carry out service contracts on their territory without having to obtain labour permits. Legal and administrative systems need to be strengthened in some candidate states in order to make effective distinctions between groups to be accommodated in the accession process. Accession states must have the administrative capacity to enforce the Acquis Communitaire. In the experience of the EU Member States this includes providing free legal aid, data base on the country of origin, and qualified interpreters. In many of the accession states current rules on expulsion are considered to be still extremely broad in comparison to those of the EU. There is a need to coordinate policies regarding equal treatment of EU nationals in all matters of employment including social security and unemployment benefits. The legislation in respect of workers' freedom covers the following Mutual recognition of professional qualifications to insure that individuals can practice their chosen profession without hindrance due to qualification differences; Citizens' rights; Coordination of social security schemes particularly in relation to pension and illness The free movement of workers themselves The treatment of non-national workers in the accession states, especially those in the informal sector, has raised questions regarding the adequacy of existing laws on discrimination. On managing migration, there are several areas that would need attention. Trafficking remains a serious problem which need resolute action and strong political commitment. There has been a notable increase in the trafficking of persons, many from third countries, from and through some of the accession states. Illegal migration must be put under control through the development of positive, market driven migration policies. Poland has an estimated 150,000 to 200,000 foreign workers in an irregular situation, mostly from the Ukraine. Hungary has 100,000 mostly ethnic Hungarians from

of 7 neighbouring countries. Finally, as the Balaton Conference had concluded, there is " a need to involve the tripartite social partners actively in all discussions over accession. They have an important role to play in designing policies on equal treatment, in protecting the rights of foreign workers and third country nationals, in spreading information, and in mobilizing support for needed changes in legislation." Table 1 Declining Population of Accession States, 1998-2015 (in 000) 1998 2015 g/year Bulgaria 8336 7526-0.6 Cyprus 800 900 0.7 Czech R. 10282 9929-0.21 Estonia 1429 1219-0.94 Hungary 10116 9408-0.43 Latvia 2424 2063-0.95 Lithuania 3694 3521-0.28 Malta 384 421 0.55 Poland 38718 39350 0.1 Romania 22474 21067-0.38 Slovakia 5377 5466 0.1 Slovenia 1993 1916-0.23 Turkey 64479 80284 1.29

of 7 170506 183070 Table 2 Labour Force and Unemployment in Accession Countries Labour Unemployment Rate Force All ages Among the Youth Among Tertiary Education 1997 All Male Female All Male Female Bulgaria 4 13.7 26.3 28.1 27.4 7.3 Cyprus 0.35 1.8 1.1 3 20.7 13.8 19.3 Czech R. 6 4.7 8.4 7.3 9.9 3.1 Estonia 0.9 10 1.8 1.8 1.8 7.9 Hungary 5 8.7 15.9 16.9 14.5 2.8 2 4.1 Latvia 1.4 14.4 27 26.4 28 7.9 Lithuania 2 14.1 26.2 28.3 23 24.7 18.1 31 Malta 0.13 5 5.2 7.2 2.8 0.3 Poland 20 11.5 24.6 21.9 28 4.6 3.7 5.4 Romania 11 6 17.8 15.5 21 5.9 5.2 6.6 Slovakia 3 11.6 22.2 22.5 21.9 3.3 3.1 3.6 Slovenia 1 7.1 18.1 16.5 20 4.3

6 of 7 Turkey 27.5 6.4 15.4 14.2 17.5 82.28 Table 3: Macroeconomic indicators for Accession States, 1997 Real GDP Net Direct Foreign Exports GDP per capita Investments as % of $billion $ ppp $ billion % of GDP GDP Bulgaria 10.1 4010 0.5 5.1 61 Cyprus 8.2 14201 0.17 2.1 Czech R. 52 10510 1.3 2.5 58 Estonia 4.7 5240 0.26 5.5 77 Hungary 45.7 7200 2.08 4.6 45 Latvia 5.5 3940 0.42 7.6 50 Lithuania 9.6 4200 0.35 3.6 55 Malta 3.3 13180 0.11 3.3 84 Poland 135.7 4520 5 3.7 26 Romania 34.8 4310 1.22 3.5 30 Slovakia 19.5 7910 0.17 0.9 56

7 of 7 Slovenia 18.2 11800 0.32 1.8 57 Turkey 189.9 6350 0.61 0.3 25 537.2 12.51 Last update: ^ top