In 2004, the European Union reached out to the East and accepted 10 new members. However, the governments of "Old Europe" have been more reluctant to open labor markets to countries such as the Czech Republic, Estonia, Hungary, and Poland where labor is much cheaper.
In the past two years, there have been fierce debates over the expectation of expanding the EU. Critics of the enlargement process have used the term "Polish Plumbers" to describe the typical worker who would arrive in Western Europe. They claim that this type of worker would be able to undercut local rivals due to the relative poverty of the ex-communist countries. Because of the pervasive fear of this influx of cheap labor, any newcomers to the European Union may be restricted from working in other member countries; hence they may not reap all of the benefits of membership.
In the terms of the expansion of the EU, founding members included a provision that places caps on the number of workers from Central Europe that will be able to conduct business in their borders. Initially the provision allowed these immigrants to work in the founding countries for a period of two years, but the period has been increased to seven years. A recent report by European Union Employment Commissioner Vladimir Spidla, however, may accelerate job migration within the Union.
Spidla's report discusses the economic impact of job growth and maintenance in Europe and compounds the European fear of losing jobs to outsourcing. However, this report proves that immigrants from the ten new members have filled gaps in the labor market and have not negatively affected the market for domestic workers.
In countries like Ireland, Sweden, and the UK, such immigration has been valuable to economic growth by helping to fill job shortages. Furthermore, the report found that Central European immigrants did not abuse the social programs of their host countries. Spidla also noted that these immigrants were relatively well educated and thereby found many positions in the hotel, restaurant, and construction service industries.
As a result of the report, the European Commission has called upon the 15 founding EU member countries to open their borders to immigrants from new member countries. Hence, by dismissing fears over the "Polish plumbers," the European Commission is indirectly attacking countries like France and Germany who have been adamant about keeping foreign workers out of their markets.
Even though this report arises in a time of increased protectionism in Europe, which has been exacerbated by slow economic growth and somewhat high unemployment, countries like Spain and Finland have agreed to open their borders fully to the immigrant workers. On the other hand, countries like Germany and Austria, who share borders with some of the cheap-labor countries, have already refused to cooperate with the European Commission. This decision was made even though both countries are aware that under the barriers put in place, there has been a rise in the underground market for labor, which is even more detrimental.
France has yet to respond to the European Commission's proposition. However, it will most likely allow increased openness in specific sectors. A full-fledged opening of France's borders is unlikely, especially when Prime Minister Dominique de Villepin is cited in the International Herald Tribune saying that the new member states had fueled public hostility toward the Union and were a cause for the political crisis. He considers them as "too heavy a financial burden."
In the past, immigration between low and high income countries within the European Union has been viewed negatively. However, Spidla's report shows clearly that new member countries may have a positive outcome on the economies of the founding member countries. Nevertheless, because the leaders of the Union, France and Germany, have yet to accept this information as credible, they are once again in disaccord with the suggestions made by the European Commission.
