EUROPEAN REVIEW
NON-EU WORKERS in Europe could acquire the right to social security if MEPs decide to back a Commission proposal which has the support of an influential parliamentary committee. At present, under directive 1408/71, member states are supposed to 'co-ordinate' their national security systems so that employed and self-employed citizens of one country and their families can 'export' their acquired social security rights on moving within the EU. However, there are 13 million legally resident non-EU citizens in the Community and their status varies from country to country in the EU.
The Commission's proposal, to extend regulation 1408/71 to non-EU nationals, won the backing in September of the European parliament's Employment and Social Affairs Committee. Although non-EU nationals would have their 'acquired' social welfare entitlements recognised across member states, the proposal would not provide them with the right to enter, stay or work in another member state. Under the Social Chapter, now incorporated into the Amsterdam Treaty, EU nationals are entitled to the right to social protection together with a minimum income for those unable to find employment or no longer entitled to unemployment benefit; and to an income on retirement, with a specified minimum income, even if the citizen is not entitled to a pension.
Economists have been warning for years that European states cannot afford to pay the pensions that their ageing population will be demanding in the next century. The pensions picture in the UK is one of the healthiest in Europe.
UNIONS AND employers are once more at loggerheads over the proposed directive on consulting workers. Their representatives in Europe, who should have come to an agreement on rights for workers to be informed and consulted in companies employing more than 20 people, failed to start talks earlier this year. In the absence of an agreement the Commission should have produced a draft directive themselves but have failed to do their part. The European TUC (Etuc) believes that the employers federation (Unice) are stalling and are frustrated with the Commission who have delayed their input in the belief that the bosses will change their mind.
Emilio Gabaglio, the unions leader, recently detected a softening in Unice's stance. But the signs of life were greatly exaggerated and the Etuc has since decided the employers are putting off both them and the Commission in a bid to keep legislation on worker consultation off the books. The CBI, a member of Unice, is known to be against such a directive, and the UK government has also come out against it. Peter Mandelson, the Secretary of State for Trade and Industry, said ahead of the TUC congress that he would side with the CBI over the proposed directive. Mr Mandelson insisted that the workers rights to be codified by the directive are a matter for national governments.
RETIRED WORKERS who move from one member state to another will have new safeguards within two years. A directive was adopted in the summer which aims to provide protection to beneficiaries of supplementary pension schemes. Under the new directive, member states will have to ensure that holders of such pensions are not treated differently if they move within the EU and that their rights are consistent throughout the Community. Amongst the provisions, posted workers will be able to continue making contributions elsewhere in the European Union.
THE UNITED STATES remained the EU's most significant trading partner in the first part of 1988. Exports to Japan fell 13% in the first quarter compared to last year's figures. Hong Kong, while not suffering the full Asian Flu, must have caught a cold as they are buying 4% less than last year, while the States export almost as much as they import from the European market.
EU's main trading partners,1st quarter 1998 | ||||
|
Country |
Exports |
Growth |
Imports |
Growth |
|
|
|
|
|
|
|
USA |
51.8 |
20% |
52.9 |
17% |
|
Switzerland |
18.4 |
6% |
16.1 |
10% |
|
Japan |
10.9 |
-13% |
22.1 |
18% |
|
Poland |
9.0 |
18% |
5.2 |
14% |
|
Russia |
8.9 |
29% |
7.9 |
-12% |
|
Norway |
8.4 |
13% |
11.1 |
-2% |
|
Turkey |
7.3 |
16% |
4.4 |
17% |
|
Hong Kong |
6.1 |
-4% |
3.1 |
23% |
|
China |
5.2 |
26% |
13.3 |
20% |
|
Taiwan |
4.1 |
9% |
6.2 |
25% |