Positive Impact of Mobility of Bulgarian and Romanian Workers on EU Economy

Seven years after the 2004 enlargement of the EU, a new European Commission study looks at the economic and labour market impact of east-west labour mobility flows in recent years. The study puts a main focus on mobility’s impact on labour markets, the macro-economy and human capital issues such as brain drain and down-schilling of mobile workers. The study highlights the overall positive role that mobile workers from Bulgaria and Romania have played in receiving countries economies. These workers have contributed to the skill mix as well as filling vacancies in sectors and jobs with labour shortages such as in construction and the domestic and food services sectors. The report’s calculations show a positive impact of the free movement of Romanian and Bulgarian workers on the EU’s long-term GDP with an increase by about 0.3% for EU-27 (0.4% for eu-15).
This study also shows that there has been no significant impact on unemployment or wages of local workers in receiving countries: studies in the EU-15 show wages are on average only 0.28% lower they would have been without mobility of the EU-2. The report also highlights that there is no evidence of a disproportionate use of benefits by intra-EU mobile EU citizens and that the impact of recent flows on national public finances is negligible or positive. The Commission’s report will serve as the basis on which the Council will carry out a review of how the transitional arrangements on free movement of Bulgarian and Romanian workers have worked in practice. 10 EU countries have still been applying restrictions on Bulgarian and Romanian workers. As of 1 January 2012, however, workers from the two countries will be allowed to work in Belgium after Flanders, the last Belgium region opposing the move, has lifted its veto just recently.