Domestic social cohesion and cross-border mobility: a tragic dilemma?

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Domestic social cohesion and cross-border mobility: a tragic dilemma? Summer Course College of Europe 3 July 2019 Frank Vandenbroucke University Amsterdam www frankvandenbroucke uva nl • Historical perspective Mobility migration: facts on labour mobility Intra-EU principles policies EU integration the national welfare states The European Pillar Social Rights dimension project according to founding fathers: belief in convergence would support simultaneous pursuit economic progress both within countries (through gradual development states) between upward across Union) Initial division labour: – development: supranational coordination security rights & anti-discrimination: sovereignty (in theory) machine worked… more or less… until 2004/2008 Source: Lefebvre Pestieau A dilemma enlarged heterogeneous EU? US 1 4 EU27 2 0 9 8 7 6 5 Median income (US ‘representative state’ = 1) Member States (EU MS’ Romania Denmark Top quintile 32% 133% 30% 140% 28% 145% 23% 152% 500 000 BG RO LV LT SK EE PL HU CZ PT SI ES MT GR UK IE BE FR NL LU GE CR 2004 PPP We must distinguish: internal external debate framed ‘rights’ ‘consequences’: fairness terms consequences for sending receiving economically active non-active short-term long-term impacts individual as whole migration 90 80 70 60 50 40 EU28 30 20 10 Native-born EU-15 EU-10 EU-3 TCN Netherlands Italy Belgium How can we justify free movement? 2) non-discriminatory access benefits those who move? 3) difference citizens application (1) (2) sense ‘earned’ citizenship? movement non-discrimination (for workers)? citizenship ↄ formal equality employment opportunities An integrated market services needs ‘posting’ ‘free workers’ be fair Non-discrimination justifies sustains principle that do not tolerate competition different systems one territory I argue two complementary logics apply legitimately with regard if they are applied conjointly: Economically have right take up borders basis ‘earn’ all State where work including protection against involuntary inactivity (unemployment illness) citizen cannot simply rely any his (or her) choice: nationality determines which is first foremost responsible Under carefully delineated conditions another he has no bond allowed say citizen’s create an ‘unreasonable burden’ its state (these substantiate absence real link host was exercised solely order benefit from state’s assistance) In contrast it ‘unreasonable’ provide adequate whatever causes their vulnerability dependence Fair rights) ‘balancing act’ implies coherent regulatory agenda: Enforcement Posting exception ‘normal rule’ Transparency coverage minimum wage Industrial relations trade union action (Viking Laval) Directive measures facilitate exercise conferred workers context freedom (Directive 2014/54) Seasonal Workers’ (2014/36) Intra-Corporate Transferees (2014/66) Professional Qualifications (2013/55) Posting: (2014); Revision (2018) Labour Authority “posted worker” employee sent by employer carry out service temporary contract intra-group posting hiring through agency example provider may win country send employees there contract) Posted mobile remain only temporarily integrate go seek employed entitled equal treatment nationals working other tax ) Even though posted still company subject law set core force rates pay; maximum periods rest periods; paid annual leave; agencies; health safety hygiene at work; men women However does whenever applicable worker accordance rules favourable than result 2014 adopted aim strengthen practical addressing issues related fraud circumvention inspections monitoring joint liability subcontracting chains exchange information June 2018 revision Workers adopted; main changes: mandatory elements remuneration (instead “minimum pay”); accommodation allowances reimbursement expenses during assignment; postings (longer 12 18 months) extended transposed into laws 2020 Road transport: ‘Lex Specialis’ Council position: December EP April 2019: Clear drivers’ pay times Three-day limit cabotage operations Fewer but better controls roadside checks Adopted 13 2019; tasks: improving employers obligations cases coordination; supporting member enforcement relevant Union facilitating concerted inspections; cooperation tackling undeclared assisting authorities resolving disputes; without prejudice competences Administrative Commission Coordination Security Systems ELA will enhance violations exploitation able report them cooperate concerned It also carrying-out tackle irregularities These place either request agree ELA’s suggestion Follow-up taken level requires Fairness consequences): long- term common interest ‘brain overflow’ rather waste’ Valorisation human capital hindered segmented markets intergenerational inadequate education training institutions Minimum wages what governments do: net disposable couple children minimum-wage earner 45000 40000 35000 30000 25000 20000 15000 10000 5000 AT FI DE DK IT EL Net Gross CSB/MIPI household Very high intensity High Medium Low low Work 2004-06 2016 Bron: Eurostat SILC 2005-2007; 2017 year T refers observation T-1 except Division policy EU)? Design flaws Why stabilization instruments centralized monetary unions? Risk sharing (pooling) Externalities public good (vaccination) Vaccination: compulsory (minimum requirements) subsidized (re-insurance) requirements effective stabilisation capacity: sufficiently generous unemployment notably short-term; sufficient schemes; segmentation leaves part poorly insured; proliferation insurance; activation unemployed individuals; budgetary buffers so automatic stabilisers bad become fortiori imperative Eurozone equipped re-insurance insurance systems: institutional moral hazard shared conception flexibility deliver (effective collective bargaining) Cluster capacity MS: insured unemployment; individuals  Convergence some key features Gothenburg Summit 17 November priorities Credible roadmap combining… legislation Policy benchmarking Funding (tangible MS) Mainstreaming fiscal surveillance Semester Completing EMU systemic functions (e g corporate taxation …) guide substantive via general standards objectives leaving ways means operational definition ‘the model’ explicit purpose pursuing pan-European based reciprocity Resources: see Outline References presentation Addressing Global Inequality: Is Part Equation? in: Diamond (ed) Crisis Globalization: Democracy Capitalism Inequality Twenty-First Century B Tauris London New York pp 235-258 (download nl) L’État-Providence en Performance et dumping Cepremap Éditions Rue d’Ulm 2012 ESDE ‘Mobility EU: Opportunities challenges’ Chapter II Employment Developments 2015 4) union: puzzles paradoxes perspectives Boone Marc; Deneckere Gita Tollebeek Jo (eds End Postwar Future – Essays Ian Buruma Verhandelingen van de KVAB voor Wetenschappen Kunsten Nieuwe reeks 31 Uitgeverij Peeters 2017; download 5) Rinaldi inequalities challenge In: Vision Consortium ): Redesigning Ways forward Gütersloh (http://www vision-europe-summit eu/) 6) Sticking yield results everybody Tribune Notre Institut Jacques Delors 7) Barnard De Baere after Cambridge: Cambridge Press September https://doi org/10 1017/9781108235174 (Introductory chapter Open Access item 263) 8) Recommendation COM(2017) 2600 final 9) Rights: promise delivery –Introduction ‘European (ESU) forum debate’ EuroVisions + contributions this debate: http://www euvisions eu/ frankvandenbroucke_uva