Hungarian Online Resources

est. 1993 by UMCP Hungarian American Student Association

Hungary fears invasion of EU workers

By Anthony Browne, Brussels Correspondent

THE doors are closing not just in Western Europe, but now also in Eastern
Europe. Hungary, one of ten Eastern and Southern European countries to
join the European Union in May, has said that it is so worried about an
^Óinvasion^Ô of workers from other countries joining the EU that it, too,
may impose restrictions on their right to work. The warning follows the
announcement by 13 of the 15 present EU members that they will impose
restrictions on the right to work on the EU^Òs 73 million new citizens for
between 2 and 7 years.

Only Britain and the Irish Republic have promised to allow full access to
their labour markets, although the UK has said that it will try to
restrict access to benefits.

However, Hungary, which has lower unemployment than most of Western
Europe, has become so worried about the knock-on effects that it may also
require work permits from workers from the other Eastern European
countries.

Peter Balazs, the Hungarian Ambassador to the European Union, said: ^ÓWe
have a very low unemployment rate, much lower than the Union, so we fear
an ^Ñinvasion^Ò by some people.

^ÓIf I consider the fact that more and more old EU members are limiting
access of the new workforce from new member states to their labour
markets, then the next consequence is that Poland, with 18 per cent of
unemployment, Slovakia, with a similarly high percentage ^× where could
they go? Instead of Sweden or Germany, they will turn to other markets ^×
for example Hungary.^Ô

Hungary is concerned not just about workers from other Eastern European
countries, but also about workers from Western Europe, in particular Turks
living in Germany, who suffer high unemployment.

Hungary, always one of the most prosperous of the former communist states,
has an unemployment rate of 5.9 per cent, compared with 11 per cent in
Spain, 10 per cent in France and 9 per cent in Germany. The Hungarian
Government believes that the country already has enough unskilled workers
and wants only high-skilled employees, as well as foreign investment.

In the past few months, more and more countries in Western Europe have
been announcing restrictions on the free movement of labour, one of the
fundamental rights of the EU. Denmark, Sweden and the Netherlands have all
gone back on early promises to give the new EU citizens the same rights to
work as existing EU citizens.

Under European law, the ten new members have the same right to restrict
the right to work of other EU citizens as the old EU members. In response
to Western European countries imposing work restrictions, the Government
of Slovakia threatened ^Óreciprocal^Ô arrangements.

However, most Eastern European governments seem to be keen to set an
example of solidarity to the old member states. A spokesman for the Czech
Government said: ^ÓIt^Òs one of the most important freedoms of the
European Union. But we are not going to play the game of a finger for a
finger. We are not introducing any restrictions, even as a reciprocal
measure.^Ô

The new Hungarian Finance Minister yesterday confirmed government spending
cuts of 180 billion florints (£450 million) as the country strives to
reduce its budget deficit. Hungary^Òs revised deficit target is 4.6 per
cent of GDP.