Mobile workers from newer European Union (EU) countries have had a positive impact on member states' economies, the European Commission said in a report on Tuesday.
"Workers from the EU-8 as well as Bulgaria and Romania have made a significant contribution to sustained economic growth, without significantly displacing local workers or driving down their wages," the report said.
EU-8 refers to the eight middle and eastern European countries which joined the EU in 2004, namely the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia. Bulgaria and Romania became EU members in 2007.
The EU accession treaties allow old members to temporarily restrict the free access to their labour market of workers from the 10 newcomers for fear of cheap labour flood.
Cyprus and Malta, the two countries which also joined the EU in 2004, were exempted.
The restrictions only apply to workers and they do not apply to the self-employed. Nor do they restrict the rights to travel and live in another member state. They aim at gradually introducing free movement step by step over a seven-year period.
The commission report said mobile workers from Bulgaria, Romania and the EU-8 have made a significant contribution to sustained economic growth over recent years, by addressing labour market shortages, without making heavy demands on welfare states.
At the same time, there is little evidence that workers from the new member states have displaced local workers or driven down their wages in a serious way, even in those countries where the inflows have been greatest, although there have been some temporary adjustment problems in specific areas, the report said.
The commission said both for the EU as a whole and for most individual countries, labour flows from newer EU member states have been limited compared to the size of labour markets and to inflows from non-EU countries.
The average population share of nationals of the newer EU countries in the old EU members rose from 0.2 per cent in 2003 to 0.5 per cent by the end of 2007.
"I call on member states to consider whether the temporary restrictions on free movement are still needed given the evidence presented in our report today," Vladimir Spidla, EU Commissioner for Employment, Social Affairs and Equal Opportunities said.
"Lifting restrictions now would not only make economic sense but would also help reduce problems such as undeclared work and bogus self-employment," he added.
The report also noted in the wake of current economic developments it is likely that a possible decline in labour demand would reduce labour flows within the EU.