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Should the transitional arrangements for the free movement of labour be maintained?

Norbert Berthold, Michael Neumann, Gerd Andres
ifo Institut für Wirtschaftsforschung, München, 2006

ifo Schnelldienst, 2006, 59, Nr. 05, 03-10

The transitional arrangements for the free movement of labour that were agreed in 2003 Accession Treaty allow postponing the introduction of parts of the community regulations of the free movement of labour of eastern European workers in the expanded EU and its member states for maximum duration of seven years. This period is subdivided into three stages. The first stage of the transitional arrangements ends on 30 April 2006. Norbert Berthold and Michael Neumann, University of Würzburg, argue for the immediate introduction of the freedom of movement because it will lead to "welfare gains for everyone". In contrast, Gerd Andres, Parliamentary Undersecretary at the Federal Ministry for Labour and Social Affairs favours a retention of the controlled entrance to the German labour market since "transitional arrangements are an effective instrument in the gradual adjustments of the large economic and social gaps between the different member states".

JEL Classification: J210

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ifo Institut für Wirtschaftsforschung, München, 2006