CO-ORDINATION OF SOCIAL SECURITY WITH
ASSOCIATED COUNTRIES
(a)
20891
5234/00
COM(99) 675
(b)
20892
5235/00
COM(99) 676
(c)
20893
5236/00
COM(99) 677
(d)
20894
5238/00
COM(99) 684
(e)
20895
5240/00
COM(99) 682
(f)
20896
5241/00
COM(99) 681
(g)
20897
5242/00
COM(99) 679
(h)
20898
5243/00
COM(99) 680
(i)
20913
5239/00
COM(99) 683
(j)
20914
5237/00
COM(99) 678
| Draft Council Decision on the position to be taken by the
Community within the Association Council established by
the Europe Agreements between the European Communities
and their Member States, of the one part, and the Republics
of Hungary, Poland, Bulgaria, Slovakia, Slovenia, Lithuania,
the Czech Republic and the Republics of Latvia, Romania
and Estonia of the other part, with regard to the adoption of
provisions for the co-ordination of social security schemes.
Hungary
Poland
Bulgaria
Slovakia
Slovenia
Lithuania
Czech Republic
Latvia
Romania
Estonia
|
| Legal base: |
(variously) Articles 37-41 of the European Agreements with associated countries; unanimity
|
| |
| Document originated:
| (all) 20 December 1999
|
| Forwarded to the Council:
| (all) 21 December 1999
|
| Deposited in Parliament:
| ((a) to (h)) 26 January 2000
((i) and (j)) 2 February 2000
|
| Department: |
Social Security |
| Basis of consideration:
| EM of 7 February 2000 |
| Previous Committee Report:
| None |
| To be discussed in Council:
| No date set |
| Committee's assessment:
| Legally and politically important
|
| Committee's decision:
| (all) Not cleared; further information requested
|
Background
2.1 EC Regulation 1408/71 co-ordinates the
operation of Member States' social security schemes. It enables
employees, the self-employed and their dependents moving within
the Community to take with them the social security rights which
they have acquired in the Member States in which they have been
resident. Social security includes health. The Regulation applies
to EC nationals. The Commission has made proposals to extend it
to third country nationals and to up-date and simplify its provisions.
We have reported several times on these proposals, most recently
on 15 December 1999[19].
The documents remain uncleared.
2.2 Europe Agreements have been reached
bi-laterally between the Community and Hungary, Poland, Bulgaria,
Estonia, Slovakia, Romania, Slovenia, Lithuania, the Czech Republic
and Latvia (the "associated countries"). One of the
objectives of the Agreements is to provide an appropriate framework
for the associated countries' integration into the Community.
To that end, the Agreements include framework provisions for co-ordinating
the operation of social security schemes of Member States for
workers who are nationals of the associated countries and are
legally working within the Community.
2.3 The framework provisions are limited
to three specific matters:
- aggregation of insurance, residence or employment
in Member States for certain benefits;
- exportability of certain benefits; and
- family allowances to be paid for family members
legally resident in the State of employment.
For the second and third of those provisions, the
associated country would be required to accord similar treatment
to nationals of a Member State legally working there and to members
of their families legally resident there.
The document
2.4 The Commission has now made proposals
to implement the framework provisions for social security. When
agreed by Council, they will need to be adopted by each of the
bi-lateral Association Councils representing the Community and
the individual associated country.
2.5 The document provides a draft Association
Council Decision which sets out provisions covering the obligations
incumbent on both Member States and the associated countries,
and also those which relate solely to the obligations of Member
States. The Decision has annexed to it the provisions of EC Regulation
1408/71. The effect would appear to be the creation of obligations
on Member States in respect of nationals of associated countries
similar to those they already have under that Regulation to EC
nationals moving within the Community.
The Government's view
2.6 In her Explanatory Memorandum of 7 February
2000, the Parliamentary Under-Secretary of State, Department of
Social Security (Angela Eagle) says that:
"The Europe Agreements
create the power to adopt provisions to implement co-ordinating
social security measures in relation to the three areas outlined
[at paragraph 2.3] above. Implementing these provisions would
mean that the UK would have to:
"(i) take into account
insurance in other Member States when considering entitlement
to retirement pensions, incapacity benefit for nationals of the
relevant country;
"(ii) export Incapacity Benefit to the relevant
country when the benefit is being paid because of an industrial
accident or disease;
"(iii) pay Child Benefit for family member
of a worker of the relevant nationality legally resident in the
UK.
"The UK is willing to implement these provisions.
"However, as drafted, the proposals seem to
go beyond the provisions envisaged in the Europe Agreements. They
aim to implement them by adopting much of EC Regulation 1408/71
which co-ordinates the operation of Member States' social security
schemes and which itself requires a separate implementing Regulation.
"The provisions of the Regulation are more wide-ranging
than those for which the Europe Agreements create power. The UK
will be pursuing this issue in the Working Group.
"Implementation of the social security provisions
in the Europe Agreements would lead to additional benefit and
administrative costs for DSS. The additional cost in the first
year is estimated at £0.5 million for all ten countries with
Europe Agreements. The additional cost of implementing the Commission's
proposal, which is more wide-ranging than we believe the Europe
Agreements allow, would be about £3 million in the first
year. The Commission has not provided any information about financial
implications for the EU as a whole.
"The Department of Social Security has undertaken
no consultation on these proposals.
"The proposals are still at an early stage.
Discussions are due to start in the Central Europe Working Group."
Conclusion
2.7 It is clearly desirable to progress
the integration of the associated countries into the Community.
Making a start in the area of co-ordinated social security provisions
is a useful step in that direction. It will bring tangible benefits
to some nationals of these countries ahead of their accession
to the Community and will facilitate compliance at that stage
with the full requirements of EC Regulation 1408/71 or any successor
proposal that may be adopted. So we welcome the Commission's action
in bringing forward these proposals. However, we recognise the
Government's concern that the proposals appear to go beyond the
provisions envisaged in the Europe Agreements. The basis of the
Government's concern in that respect may turn more on the legal
issue involved (whether the proposals go beyond the limits of
the legal base in the Europe Agreements) rather than the financial
and administrative consequences.
2.8 On that point there is a fundamental
difference of view between the Commission and the Government.
For the former, the power conferred on the Association Council
by the relevant Article of the Association Agreement is to adopt
appropriate provisions to implement the objective of co-ordinating
social security systems for workers of the applicant State employed
in a Member State; the three specified matters are merely illustrative.
For the latter those matters are determinative of the scope of
the power.
2.9 We are content that the Government
should explore the legal issue further. We recognise also that
the substance of this proposal may be affected should changes
be made to Regulation 1408/71 as a result of the Commission's
proposals to which we refer above (in paragraph 2.1). We do not
clear the documents at this stage. We ask the Minister to explain
her reasons for holding the view that the power conferred by the
Association Agreements is circumscribed, the grounds relied on
by the Commission for the opposite view and the positions taken
up by other Member States. We also ask her to keep us informed
of progress and, in particular, of any outcome on the legal concern
she has expressed.
19 (18743) 13485/97 and (19764) 5133/99; see HC 23-iv
(1999-2000), paragraph 2. Back
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