EU welcomes German move to open labour market to east Europeans

BRUSSELS (AFP) - The European Union's employment chief welcomed yesterday that Berlin has begun considering lifting employment restrictions on workers from EU member states in eastern Europe.

The German government said earlier this week it was considering loosening restrictions on workers from recently joined EU member states, mostly in poorer eastern Europe.

"It is high time that there is a discussion on this issue in Germany, given the national economic and labour market situation," said EU Commissioner for Employment, Social Affairs and Equal Opportunities Vladimir Spidla.

"We have seen that liberalising the labour market has been to the benefit of both the economy of the host country as it met labour market shortages as well as of the mobile workers as they gained new experiences and skills," he added.

When 10 mostly ex-communist countries in eastern Europe joined the EU in 2004, most existing members -- with the exception of Britain, Ireland and Sweden -- put restrictions on workers from the newcomers, fearing a flood of cheap labour.

During the European Union's "big bang" enlargement, Germany levelled a two-year restriction on citizens from the new member countries working here, fearing hordes of migrant workers could snap up jobs and undercut wages.

The German government extended the limits last year for an additional three years despite criticism from the corporate sector.

In May 2009, Berlin could extend the limits for another two years under EU rules if it can demonstrate that opening the labour market would create problems for the German economy.

Finland, Spain, Portugal and Greece followed Britain, Ireland and Sweden's examples in May 2006 and fully lifted their restrictions and Italy did the same in July 2006 and the Netherlands in May 2007.