A guide on the Habitual Residence Test
Since January 2014 the EU’s labour market is fully open to Bulgarian and Romanian citizens whose countries joined the EU in 2007. In some EU countries, such as the UK, Germany, the Netherlands and Austria, some politicians and officials have voiced concerns that an open labour market will put pressure on national social security systems.
The European Commission argues that free movement of workers is one of the four fundamental freedoms of the EU and a necessary part of the European single market. It gives Europe’s citizens a wider range of job opportunities and benefits the economies and welfare systems of the host country. A report from October 2013 commissioned by the European Commission shows that a vast majority of mobile citizens within the EU work in their host country, pay taxes and do not receive social benefits. This report and others show that mobile workers are net contributors to the finances of their host countries because they pay more in taxes than they receive in benefits.
However, the interior ministers of the UK, Germany, the Netherlands and Austria warned in spring last year that some cities had come under pressure from EU migrants claiming welfare benefits. Benefit entitlement differs in different EU countries, as Member States define their own social security rules. Therefore, it is the host country's laws establish the conditions of entitlement to benefits. The EU’s role is to ensure that EU citizens do not lose their social security rights when moving within the EU.
The Commission stresses that EU law provides strong safeguards to prevent abuse of the right to free movement. In order to address concerns raised by some Member States, the European Commission published on 13 January the Guide on the Habitual Residence Test for authorities to apply the ‘Habitual Residence’ safeguards in practice. Moreover, a Conference of mayors on EU mobility at local level on 11 February will present the impact of free EU movement in six European cities and the actions defined by the Commission in order to address local authorities’ needs as regards free movement. You can register for this event here.
The Commission is also preparing a handbook on addressing marriages of convenience and an online training module to support staff in local authorities. In addition, the European Social Fund can be used for the development of social inclusion programmes at local level. Commissioner for Employment, Social Affairs and Inclusion László Andor also announced that the European Parliament, the Council and the European Commission have agreed on the proposal for a Directive on measures facilitating the exercise of the right of free movement of workers.
Resources:
- EU rules on free movement
- EU Social Security Coordination
- Free movement of people: five actions to benefit citizens, growth and employment in the EU