ECAS Knowledge Centre
Freedom of Movement in the EU
European Citizens' Initiative (ECI)
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This study was undertaken to estimate some aspects of the net fiscal impact of EU migrants in four EU countries Austria, Germany, the Netherlands and the United Kingdom. The report outlines the role of Fiscal Impact of EU Migrants in Selected Countries migrants from EU countries as participants in the labour market, as taxpayers and as benefit recipients also. The fiscal contribution of EU foreigners has increased substantially in the past several years. Compared to 2009, inn 2013 EU migrants paid 31% more in direct taxes as their wages increased and more EU workers found employment opportunities in Austria, Germany, the Netherlands, and the UK. As migration accelerated, EU foreigners also paid 44% more on indirect taxes, as they spent more onconsumer purchases. EU foreigners in Austria, Germany, the Netherlands and the UK received 35% more benefits than they did in 2009, due to the overall expansion of the welfare state in addition to the inflow of EU migrants.
This study provides an overview of the situation of migrants from Eastern Partnership (EaP) countries in Germany, with this chapter particularly focusing on the labour market integration of EaP migrants, their access to social assistance and social services, and the impact of these flows on the German labour market. We then provide an informed view of the scope for future increased mobility between Germany and EaP countries, in the light of the skills needs and demographic trends expected in the next 10 to 20 years. Based on the results, the following conclusions can be drawn. More than half of EaP migrants come to Germany for work and study purposes. Family reunification is important for Ukrainians and Moldovans. Work and family purposes are the two main residence grounds for migrants from Moldova and Ukraine, while the other nationalities hold residence permits for reasons of study and work in most cases.
A Federal State Committee is proposing that if migrants are expelled as a result of abusing movement rights, they will not be permitted to re-enter Germany for a certain period. A time limit of 3-6 months is also proposed for migrants to find work before the right of residence is revoked.
Focusing on six European cities between 2004 and 2011 (Barcelona, Hamburg, Dublin, Turin, Lille, Prague), the report claims that labour migration had been profitable to the host communities. Migrants mainly move for labour opportunities, not social benefits. E.g. Migrants in Turin have bought €1.5bn to public finances. Migrants fill in local labour gaps rather than displace native workers. Social and cultural impacts also appear to be negligible.
Due to migrants generally being highly qualified, immigration has had either a neutral or positive impact on the labour market in Germany -- but some problem with integration in the workplace (language skills). Migration also helps the welfare state system as migrants are net contributors as a whole (net contribution is estimated at €2000/year/person, which is expected to rise according to migrants being highly qualified). Migration also helps to 'top-up' the labour pool. Reforms are needed to properly realise these potential gains though -- migration is not continuous, but tends to be driven by outside political events. This also applies to migrants from outside of the EU. Legal barriers should be diminished and migrants should be actively recruited.
Law on the General Freedom of Movement of European Union Citizens.
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