Bruegel Institute report on the single market, including the role of the posting of workers

Few days ago the Berlin branch of the renowned economic Bruegel Institute has published a report: “Making the best of the European single market”. It discusses the current problems regarding the single market and directions towards which the EU can move to minimize them. One of the parts is on the internal migration and the role of the posting of workers. 

EU countries in the recent years have struggled with economic slow-down and decline in the welfare comparing to the previous years. It brings the attempts to maintain the current level of life. Therefore, according to the authors, leads to a perception of unfair treatment in the member states. Estimations show that the major constraints inhibiting the full market integration are kept mostly in the service sector at the same time limiting economic growth. Suggested solutions are excercising the international tools, which enable to minimize the integration’s side-effects. It especially considers the poorer EU countries. 

As one of the top issues regarding the integration the authors find the posting of workers. It is a phenomenon actively growing in the recent years. They also metion the revision proposal of the posting of workers Directive. It’s aim is to combat the unfair practices in the EU, whereas it can lead to further limitations of the already restricted freedom to provide services. Noteworthy, the the inspection system is in fact archaic. However, the systems introduced right now will in the near future allow a very accurate flow of information between the member states

Moreover, there appear solution suggestions alternative to the revision proposal. The proposal would be forcing the firms to adapt to the new standards in the host countries. Instead, important is the precise monitoring and enforcement of fulfilling the rules of posting in the sending countries (eg. paying contributions). 

We encourage to read the full report. 

We encourage to read the full report.

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