Globalisation Institute

EU's dirty dozen should allow free movement of labour

Posted on 6 February 2006

Today's London Financial Times has a leader on the issue of migration between EU member states. The problem is that only three of the EU15 countries decided to allow free movement of labour when the EU expanded in May 2004, with the rest treating the accession countries as second class members.

The good news is that what migration that has taken place seems to have been good for the European economy. The European Commission says that improved labour market performance has led to better economic growth and public finances.

The FT rightly says that the rest of the EU15 should join Britain, Ireland and Sweden in welcoming Eastern Europeans, saying that the decision to block them:

was always a shabby one, reflecting the lack of confidence among the older member states about the economic impact. Experience has again proved wrong the lump of labour fallacy there there is only so much work to go around and that migrants will displace the existing workforce. As the deadline for deciding on whether to lift the restrictions approaches, the 12 countries that maintain them must show boldness and courage in taking medicine that will undoubtedly do them good.