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EU Expansion and the Free Movement of Workers: Do Continued Restrictions Make Sense for Germany? | Zuwanderung, Flucht und Asyl: Aktuelle Themen | bpb.de

EU Expansion and the Free Movement of Workers: Do Continued Restrictions Make Sense for Germany?

On 1 May 2004, eight Central and Eastern European states joined the European Union (EU). In response to fears that a 'flood' of cheap labour from the new member states would lead to higher unemployment and falling wages in other parts of the EU, 'transitional arrangements' were introduced to allow member states to restrict the free movement of workers from the new member states for a period of up to seven years. Now that two years have passed since the restrictions were put in place, this policy brief looks at the number and characteristics of the labour migrants from the new member states who have taken up employment in the countries that chose to open their labour markets, with particular emphasis on the United Kingdom. It also considers the impact these migrants have had on the domestic economy and whether or not continued restrictions make sense for Germany. (Published 7/2006)

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Introduction

On 1 May 2004, eight Central and Eastern European states with a combined total population of approximately 75 million people joined the European Union. Membership in the EU guarantees the citizens of…

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The Transitional Arrangements: An Overview

For workers from a European Union member state, the freedom to look for and take up employment in another member state has existed since the founding of the European Community (EC) in 1957.

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Free Movement of Workers and Economic Theory

Using very basic economic models, it is possible to argue – as some economists did prior to the EU enlargement – that the creation of a common market for labour, i.e. the elimination of barriers…

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Public Fears – A Question of Scale

In some EU15 countries, the high number of predicted immigrants raised fears among politicians and the general public that already high unemployment rates would rise further once 'cheap' labour…

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Do Continued Restrictions Make Sense for Germany?

Despite the positive economic developments in the EU15 countries that chose to allow the free movement of workers, Germany has already announced its intention to keep restrictions in place.

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Conclusion

A look at the countries that chose to allow the free movement of workers from the EU8 immediately following accession shows that fears of large, unmanageable streams of low- or unqualified workers…

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References

Here you can find a list of references for the Policy Brief "EU Expansion and the Free Movement of Workers: Do Continued Restrictions Make Sense for Germany?" by Michael Heinen and Anna Pegels.