Article in Journal

Social union, migration and the European constitution

Hans-Werner Sinn
ifo Institut für Wirtschaftsforschung, München, 2004

ifo Schnelldienst, 2004, 57, Nr. 13, 13-16

In his speech at the 3rd Munich Economic Summit on 18 June 2004 Prof. Hans-Werner Sinn presented his position on the new EU freedom of movement directive. He warned of a danger of an erosion of the welfare state that will arise from freedom of movement and full social inclusion. Freedom of movement, full social inclusion rights and the social welfare state are three goals that cannot coexist; one must be abandoned. He recommended the application of the principle of the selectively delayed integration into the welfare state for employed persons and the home-country principle for those who are not employed. In this way Europe can remain liberal and retain its social welfare system at the same time.

JEL Classification: F220,H550

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ifo Institut für Wirtschaftsforschung, München, 2004