Memorandum from the Foreign and Commonwealth
Office
Letter from Dr Denis MacShane MP, Minister
for Europe, to the Chairman of the Foreign Affairs Committee
During the evidence session to your Committee
on 1 April, Andrew Mackinlay asked me about rights of free movement
for workers from 1 May 2004. Since this is a complex issue, you
may welcome a full explanation.
Under the Accession Treaty, nationals of all
the new Member States will generally enjoy rights of free movement,
eg for retirement, study or holidays, from the date of accession
(1 May 2004). Nationals of Malta and Cyprus will also enjoy, from
the same point in time, the right of free movement for the purpose
of work. However, nationals of the Czech Republic, Slovakia, Estonia,
Latvia, Lithuania, Poland, Slovenia and Hungary ("the eight
relevant states") will be subject to transitional restrictions
on their freedom to work in the existing Member States—for
a maximum period of seven years after the date of accession.
Under the Accession Treaty, the existing Member
States will, between 1 May 2004 and 30 April 2006, regulate the
access to their labour markets of nationals of the eight relevant
states through "national measures" or "bilateral
agreements". The Treaty does not define either term, in effect
allowing the existing Member States to adopt a permissive or a
restrictive policy for the first two years after accession.
From 1 May 2006, the existing Member States
have a choice:
— either to apply the provisions of
Community law on free movement of workers;
— or to continue to apply "national
measures" or "bilateral agreements"—Member
States taking this option may apply such measures or agreements
for a further three years (ie until 30 April 2009).
From 1 May 2006, any Member State that has chosen
to apply Community law may, during the following five years (ie
until 30 April 2011), request the Commission to suspend in whole
or in part the application of Community law if the Member State
"undergoes or foresees disturbances on its labour market
which could seriously threaten the standard of living or level
of employment in a given region or occupation". In exceptional
cases, the Member State may unilaterally suspend the relevant
provisions of Community law, followed by a reasoned notification
to the Commission.
Subsequent to 30 April 2009, any existing Member
State that has, in the interim, continued to apply "national
measures" or "bilateral agreements" may continue
to do so for a further two years (ie until 30 April 2011) "in
case of serious disturbances of its labour market".
During the transitional period, the Accession
Treaty allows the eight relevant states to maintain in force "equivalent
measures" to the "national measures" being applied
to their nationals by the existing Member States. In other words,
if Germany, eg, chose to restrict access among Polish workers,
Poland could do the same for German workers.
On 10 December last year, the Government announced
that it would waive restrictions on nationals of the eight relevant
states from 1 May 2004. In the terms envisaged by the Accession
Treaty, the Government will thus lay down, between 1 May 2004
and 30 April 2006, "national measures" that grant a
right of free movement for workers. From 1 May 2006, the UK will
formally apply Community law on free movement. In these circumstances,
the Accession Treaty does not require the eight relevant states
to reciprocate the UK's policy until 1 May 2006, though they may
choose to do so earlier than that. The Government very much hopes
that all eight will announce their willingness to reciprocate
from the date of accession. Many, including Poland and Hungary,
have already done so.
I am copying this letter to the Clerk of your
Committee and to Andrew Mackinlay. I hope this is helpful.
Dr Denis MacShane
Minister for Europe
May 2003
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