The European Union and Immigration from New Member Countries
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Case Details:
Case Code : ECON017
Case Length : 20 Pages
Period : 1945-2005
Pub Date : 2006
Teaching Note :Not Available
Organization : -
Industry : -
Countries : EU countries
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"The [European] Union has today set itself a new strategic goal for the next
decade: to become the most competitive and dynamic knowledge-based economy
in the world capable of sustainable economic growth with more and better
jobs and greater social cohesion."1
- Presidency Conclusions, Lisbon European Council, March 2000.
"The 'old' EU owes them [the new members] a welcome. In practical terms,
this means that West European politicians should stop exploiting populist
resentment of low-wage competition. They should explain to their voters that
economic reforms would be necessary even in the absence of enlargement and
that, on the whole, the addition of ten new members has been good for the EU
economy."2
- Katinka Barysch, Chief Economist, Centre for European Reform,3
2005.
Introduction
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On March 09, 2006, the Spanish Prime Minister, Jose
Luis Rodriguez Zapatero (Zapatero), and his Polish counterpart,
Kazimierz Marcinkiewicz, announced at a joint press conference that from
May 01, 2006, Spain would open up its labor market to workers from
Poland and the other seven countries from Central and East Europe (CEE)
which had joined the European Union (EU) on May 01, 2004.4
The announcement was not unexpected as it had been widely anticipated
that Spain would favor opening up its labor market to the new members5
of the EU.On February 28, 2006, Portugal had also indicated that it
would open up its labor market to the new members from the CEE. |
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Before that, on February 13, 2006, Finland's Labor Ministry
had proposed that restrictions on labor movement from the new EU member
countries be lifted.
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At the time of the 2004 enlargement, the EU had
allowed its existing members (the old member states) to impose
restrictions on the free movement of labor from the new member states
for a transition period extendable up to 2011.
Twelve out of the fifteen
countries opted for labor restrictions, fearing that there would be a
large-scale influx of immigrants from the new member countries chasing
jobs and driving down wage rates. Only the UK, Ireland, and Sweden
decided to allow the new member countries access to their labor markets.
(Refer to Exhibit I for a map of the European Union in 2005). |
The European Union and Immigration from New Member Countries
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