EUROPE: Romanian and Bulgarian workers drive wedge in EU By Sarah Laitner in Brussels and Stefan Wagstyl in London
European Union countries are split over whether to impose labour market restrictions on workers from Romania and Bulgaria when the Black Sea states join the EU on Monday. Leading "old" nations including the UK, Germany, Spain and France will limit the number of workers they accept, while most "new" members such as Poland and the Czech Republic will allow unfettered entry. The curbs in western countries, imposed via work permits or quotas, will deny citizens of ex-communist Romania and Bulgaria full use of the fundamental EU right of freedom of movement. EU officials have put a brave face on the decisions, saying that, with nearby countries such as Slovakia and Slovenia offering unrestricted access, Bulgarians and Romanians will not have to travel far to take up their new rights. However, most of those who plan to leaveare expected to head to higher-wage "old" member states, 10 of which have so far said they will limit labour market entry for at least two years. The decision by much of "old" Europe comes amid concern in some countries over the impact the new workers could have on unemployment, public services and the wages of lower-paid locals. But the limits can do little to prevent people moving west. Any EU citizen holding a valid passport can live in another member state for up to three months without registering. The newcomers can work anywhere on a self-employed basis. Catherine Drew, researcher at the Institute of Public Policy Research think-tank, says: "If you impose labour restrictions on a group of people who are entitled to come to an EU member state anyway, then you could just create opportunities for these people to slip into the illegal workforce." Behind the restrictions is a debate about westward migration spurred by the EU's "big bang" enlargement in 2004 that took in eight lower-wage ex-communist countries. Britain, Ireland and Sweden were the only "old" member states that didnot impose curbs onworkers from these nations, which include Poland and Hungary. Then, the UK predicted 13,000 entrants from the eight new members. More than 500,000 new Europeans - mostly Poles - have registered in Britain since accession, often filling vacancies in the construction and catering sectors. Now the UK is to limit Romanian and Bulgarian employment, in a reverse of its open-door approach. Ireland is to impose curbs, though Sweden will not. Leading British business groups back the changeof heart. They argue that, although the UK economy benefited from the influx of eastern Europeans, it could not necessarily absorb another large wave. Economists say the magnitude of emigration from Romania and Bulgaria to the rest of the EU will depend on how fast the countries close the income gap with western Europe. Average incomes in purchasing power terms in Romania and Bulgaria are just 28 per cent of the western European level, compared with 45 per cent in central Europe. So the period in which Romanians and Bulgarians might want to emigrate could turn out to be longer than for Poles. Romania does not expect an exodus from its 20m population; an estimated 2m citizens are already working abroad, some illegally, mostly in Spain, Italy and Germany. Romanian GDP growth is strong, at an expected 7 per cent this year, and unemployment has fallen. Mihai-Razvan Ungureanu, Romanian foreign minister, says: "I know someRomanians think emigration is a brain drain, but Idon't. Romanians living abroad maintain their identity. They work hard and bring Romania a good name." Emilia Maslarova, Bulgaria's labour minister, says the outflow would be small and would not "pose a threat for any member state". Ms Maslarova says departures would be modest because Bulgaria had experienced a big emigration in 1998-2000, and 800,000 of its citizens were already living abroad. She cites a survey carried out in August by polling group Gallup International which showed that only 46,000 Bulgarians of working age were seriously considering working overseas. Bulgarian economic growth in 2006 was strong, at 6 per cent, while the employment rate was up 3.3 percentage points in the year to 59.1 per cent. Brussels says some members have yet to outline plans on labour access for Romania and Bulgaria. But Finland joins Sweden as an "old" EU member to buck the trend and open its doors fully. Hungary, which borders Romania, is the only ex-communist country to impose curbs. Copyright The Financial Times Limited 2006 "FT" and the "Financial Times" are trademarks of The Financial Times. -- ______________ EuroAtlantic Club monitoring Romania's journey towards the EU http://www.europe.org.ro/euroatlantic_club/ mail to: P.O.Box 13-166, Bucharest 011737 e-mail to: [EMAIL PROTECTED]
