Tag Archive: freedom of movement

In Praise of Freedom of Movement of People in the European Union

MoveMapper™ helps you move to another country quickly and painlessly

MoveMapper Android App

In these days of mass movements of people connected with the refugee crisis, it is rare to find recognition of the European Union’s (EU) freedom of movement of people, let alone any commendations. Rather, the media and politicians tend to focus on the stresses and strains connected with migration and freedom of movement within the EU in general and the volume of refugees heading to Europe specifically. In this article, I argue against the grain of current discourse, fully acknowledging populists’ ability to set the tone of public opinion. I make the argument that the single most important achievement of the EU is the principle of freedom of movement of people across 28 countries. This fundamental right is under attack from many quarters. This article and the MoveMapper™ app presented below, represent my effort to counteract this trend. Freedom of movement of people has the capacity to improve people’s lives, while also raising standards of living for all. We should not allow it to be undermined by short-sighted, populist agendas.

The Nation State: freedom of movement lost

Before there were dukedoms, fiefdoms, principalities and eventually nation-states, human being roamed the earth and settled where they chose to. Freedom of movement of people existed in its purest sense: we could go anywhere we liked and the world was our oyster. After the establishment the nation state we became Germans, Britons and so on. Fences, borders, visas and other obstacles restricted the ability to live and work severely and the arena of life was telescoped into national boundaries except for a lucky few, such as diplomats, the military and the well-to-do.

The EU: freedom of movement regained

At the heart of the European Union (EU) is the establishment of a common market. This in turn required overcoming a number of restrictions and led directly to the establishment of the four fundamental freedoms at the core of the EU:

  • The free movement of goods: this right allows free flow of products between EU countries free of import/export duties/charges and common customs tariffs for non-EU countries;
  • The free movement of services (and of establishment): this ensures unrestricted rights to create firms/self-employment in any country and freedom to provide cross-border services;
  • The free movement of capital: this allows capital flows (finance, property, etc.) within the EU countries;
  • The free movement of people: this allows the relocation of citizens between EU 28 countries to pursue their activities, including the abolition of discrimination based on nationality.

The EU is dedicated to realising these four freedoms, subject to exceptions where a Member State can prove that they jeopardize a public good (e.g. public health) and are safeguarded by EU Treaty. Of the four freedoms, the most important to the 500+ million people living in the EU, is the freedom of movement of people throughout 28 countries (actually 32 in the European Economic Area countries, which includes Switzerland, Iceland, Liechtenstein and Norway).

Up-Close: Movement of People

For me, this is the most fundamental freedom and greatest achievement of the EU. It guarantees every EU/EEA citizen the right to move freely, visit, live, work and retire in any member state without restriction. It applies to all EU/EEA citizens, regardless of nationality and does away with discrimination in the common market. Furthermore, it ensures that certain rights can also be extended to the family members of the worker, including benefits, pensions, etc.

None of us believes that we should be disadvantaged in the labour market because of our religion, skin colour or other factors. This freedom means that discrimination on the basis of nationality, residence and/or language is not permitted, while also securing equal treatment in employment conditions, remuneration, dismissal and the receipt of social benefits.

If you believe in transparency and fair treatment, there is absolutely nothing that anyone should fear from the freedom of movement of people. On the contrary, this is an achievement that Europeans should be proud of.

The pros and cons: movement of the people

At the most basic level, the freedom of movement of people means that you and I have access to 32 EEA countries, as well as Switzerland, at the drop of a hat. Not only that, we have automatically the same rights (and responsibilities) as the citizens of those countries. What does this mean in practice?

  • You can visit all 31 countries when you like and as often as you like without cost, delay, restriction, etc.;
  • You can study / au pair, etc. in any of these countries using the same procedures and incurring the same costs as the national citizens of that country;
  • You can work in all countries without constraints or fear of discrimination due to nationality, residence, language, etc.;
  • You do not need a visa or a qualifying period before you can start working or your family can join you;
  • You can do not need to fear being treated differently in the form of the contract, holidays, wages, pension, benefits, etc. just because your nationality is different;
  • You can retire wherever you choose and transfer your pension without fear of being penalised or restricted by virtue of choosing to live in another EU/EEA country.

These fundamental rights are just the tip of the iceberg. Yet this degree of freedom to take greater control of your own destiny would have been considered to be a utopian dream not so long ago in Europe. It used to take hours to cross borders and the long, costly and uncertain bureaucratic nightmares involved in moving countries, getting a job, buying a property, establishing a company, etc. made it a remote dream, except for a small minority. No longer; this particular freedom have been hard won and it is worth fighting tooth and nail to retain.

The above are not the only benefits of the freedom of movement of people. It can play an important role in other respects, contributing to individual, national and EU well-being:

  • Ageing Population and pensions: the ageing population structure in the EU is a major challenge: of the 28 countries of the EU, only Ireland, France and the UK are remotely close to being able to replace their population. Politicians may seek to increase the female participation rate in the labour market and raise the pensionable age, however, the serious demographic challenge cannot be overcome without significant positive net migration for a sustained period of time, even beyond the levels currently being experienced due to the refugee crisis;
  • Reducing unemployment: some cities and regions of EU countries experience much higher levels of unemployment than others (e.g. London vs Liverpool). In the same vein, some countries experience higher levels of unemployment than others (e.g. Greece and Portugal vs Germany and the UK). If economies are growing and labour is attracted to more dynamic cities, regions or countries, this is advantageous to all concerned, not least the unemployed, their dependants, the employers, as well as the tax man;
  • Economic contribution: if economic growth is restricted due to lack of employees or absence of certain types of skill, a labour market of 500+ million makes it possible for economies to continue growing without overheating and resulting in recession. This applies not only to the top, professional jobs. Low paid, dirty, dangerous, dull, flexible and insecure work is the very type that many nationals of the wealthier EU countries are very content to leave to others.

There are few things in life that only entail benefits and no costs; freedom of movement of people is no different. The main potential disadvantages include the following:

  • Cheap Labour Depressing Wages: it is possible that inflows of people willing to take even lower pay than the going rate for certain jobs depresses the wage levels. However, the case either way (depressing or increasing wages) is hotly disputed by economists. Most studies find that there is almost no effect either way but many people remain fearful of this issue, especially the less educated/skilled;
  • Already High Unemployment Levels: it is possible that migrants will flow to areas with already high levels of unemployment. However, migratory flows have an internal logic – migrants want to find work, not to move from being unemployed in one location to being unemployed in yet another. As a rule, they seek out high employment areas because they want to work, they want to save and they want a shot at a better life for themselves;
  • Welfare Tourism: it is possible that a proportion of migrants will seek to improve their lives by migrating to a country offering higher social benefits in than in their own nation. However, research suggests that a tiny proportion of EU migrants fall into this category (less than 1% of all beneficiaries in six EU countries and 1%-5% in five others). Despite the great song and dance about this issue by the populists, no government has come up with any data corroborating the overblown claims of cross-border welfare tourism;
  • Brain drain: freedom of movement of people can lead to skilled people leaving countries that paid for their education and training to be benefit of the receiving country. This is certainly an issue for the emitting country. But there is also the prospect that many choose return to their country of origin, bringing with them higher levels of human capital, know-how, investment capital and an entrepreneurial mind-set that can contribute to national development.

While recognising the pros and cons involved, on balance, most conclude that the freedom of movement of people is a great boon for the individuals concerned, as well as for the emitting and receiving countries. Migration across localities, cities, regions and countries has the capacity to unleash economic development and raise living standards, while also delivering greater satisfaction and happiness at the individual level. It is not a one-way street, but it is worth defending.

The Reality: movement indirectly hampered

The reality however is that governments, to varying degrees, are sensitive to the issue of freedom of movement of people. While recognising the great potential and actual advantages of migration, politicians are extremely mindful of emotive public opinion. They are fully aware of the demographic ticking-bomb that is the ageing European society. But short-termism is inherent their profession (4-5 year election cycles) and populism (winning the next local / regional / national / European region election) is the name of their game. They and the media feed upon people´s concerns and fears, regardless of whether these are well-founded or not. Fear, not hope, is their basic working material.

The consequence is that none of the EU and EEA governments (the European Commission included) make it easy for people to get access to the information that they need to have a sound basis for deciding whether to move to another country or not. A lot of information is available, but it is fragmented, outdated, uncoordinated, etc. Moving to another country may be something that we consider but we usually do not get far. It takes weeks of research effort to connect up the fragmented dots and build a clear picture of what is involved in moving from one country to another with the EU. We typically lack the time, skills, energy and patience to do this.

Relatively few people make use of the single most precious gift of the EU to its 508 million citizens: only 11 million EU citizens have taken advantage of the right to live, study, work or retire in another EU country (or 2.2% of all people in 28 countries). It is clear that some countries are more attractive than others, but the low level of general migration within the EU is not something to fear and deny.

Moving people: MoveMapper™ app

Through the EU’s freedom of movement of people, we have almost utopian rights to live our lives how and where we want. If we choose to, we can change our minds and go back home and pick-up where we left off. I am a serial migrant. I have lived in several EU countries and worked in almost 40 countries worldwide. I have benefited enormously as a human being and as a professional. I do not fear migration or migrants. On the contrary, I embrace other cultures, languages, traditions, history, art, ideas, cuisine, and yes, also our differences and our sameness as human beings, whatever our skin colour, language or beliefs.

The beauty of the freedom of movement of people has inspired me to develop the MoveMapper™ app, which is designed to bring to together key information in deciding whether to work / study / au pair / retire, etc. in another EU country, starting with Britain and Germany.

The MoveMapper™ app covers the formalities of moving to another country, how to get accommodation, how to find employment, how to deal with financial issues, how to integrate your family, how to gain education / language skills and other issues. By pulling the relevant information together, the app provides you with the capacity to enrich your life.

I do not claim that this is a perfect app, that it has all the possible information or indeed that it is 100% up-to-date. The situation is constantly evolving and maintaining information is not easy.

But I believe that it will provide you with sufficient information with which to enable you to decide whether and how to take advantage of the EU’s greatest gift to its citizens. The rest is up to you.

The MoveMapper™ app offers information for two countries to start with: Britain and Germany, the countries closest to my heart and which form the focus of my blog: the AngloDeutsch Blog.

The free version can be tested for free. The premium version costs Euro 0,99 + VAT per country.

When the MoveMapper™ app generates sufficient interest and revenue, I plan to add other countries and update and improve the information available, as well as the app experience.

Test MoveMapper™. Rate it. Share it by forwarding it to people who might be interested.

Do not fear the freedom of movement of people within the EU; instead, recognise it for the incredible opportunity that it offers to those that choose to make use of it. This amounts to real power, real freedom to shape our lives and those of our families.

© Ricardo Pinto, 2016, AngloDeutsch™ Blog, www.AngloDeutsch.EU


To Brexit or not to Brexit: key issues for the EU Referendum

EU Referendum ahead

The British voter will soon be asked to decide on whether Britain will continue to have a future as part of the European Union (EU) or to exit it (i.e. Brexit or British Exist). The EU referendum’s date has not yet been fixed and must happen by 2017, but is widely speculated that it is going to be to be scheduled for mid-2016.

That question that will be put to the British voter is simple but fundamentally important, namely:

  • Should the United Kingdom remain a member of the European Union or leave the EU?

The options are either to:

  • Remain a member of the European Union or
  • Leave the European Union

This is a simple question with simple options, but it nevertheless is a historic referendum that will influence the future of the UK (and that of the EU itself) for generations to come.

Brexit the obvious solution?

I am a British citizen who lived, studied and worked in Britain. My parents, sibling and my closest friends remain in Britain. Nevertheless, during the last 20 years, I have lived and worked in numerous countries of the EU and elsewhere. I am married to a German and my business takes me regularly to different parts of the EU, potential future EU countries and beyond. I understand what the feeling is about the EU and that there is frustration with the way the EU is perceived to be interfering with British sovereignty and especially about the freedom of movement of people, which is widely seen to be adding to the social pressures in the country.

If I were about to cast a vote at the forthcoming EU referendum, I would feel apprehensive about it. If I were to believe what a hostile media and populist politicians stress, my gut reaction might be to vote for Brexit and leave the EU. I might not be greatly enamoured by the current state of the UK economy, the ongoing austerity, the decreasing wages and the job insecurity. I might well be hearing about the number of laws and regulations emanating from “Brussels”, which the shorthand for the EU, with the implication that Britain no longer controls its own borders and sovereignty. I might well be tempted to conclude that the EU is indeed to blame.

Furthermore, I might also be frustrated by my inability to get on to the first rang of the housing ladder while others point to migrants from the EU are taking up the supply of housing that I or my children want to make use of in our own country. This might lead me to concur with those that point to the “uncontrolled” borders and the EU migration caused by the freedom of movement of people. A similar argument is applied to the pressures in the health and education systems, and I might also be concerned about the “swarms” of EU migrants taking-up scarce resources that we are entitled to, since we are the ones who are actually paying the taxes while the others jump the queue and coin the market for social benefits.

In short, if I were to believe all of the above, I might be well disposed to giving “Europe” a bloody nose, just as populist politicians and the media are urging me to. I might vote to leave the EU: Britain was great on its own and can be once again.

The real issues

But the British voters are fair and reasonable. Rather than follow their gut reaction, they will want to balance both sides of the equation and be fair and dispassionate in making this historic decision. They will want answers to the following questions:

  • Is the negative portrayal of the EU and all the criticism connected with it correct?
  • Is it too simplistic to say that the EU is to blame for all the challenges in Britain?
  • Is Britain indeed so tied-up by the EU that it is no longer in charge of its own destiny?
  • Are there only costs to being one of 28 member of the EU?

If something sounds too simple to be true (it’s the EU, stupid!), then perhaps it is really is too good to be true. Simple solutions to complex problems are appealing but can the EU really be the fount of all of Britain’s ills and will the country really be better off immediately upon Brexit?

Looking at it through another lens, the fair-minded British voter might ask whether it is reasonable or not to only see “Europe”, “Brussels” and the “European Union” only in a negative light? Can it really be that Britain is only paying in but getting nought out of the EU? And, if things are not quite so black and white, what exactly are those positives that are so rare to hear about? Are the benefits so abstract that the ordinary voter simply cannot grasp them or related to them?

We all instinctively know that there are two sides to every story but the media and the loudest politicians do not excel at presenting the pros and cons. As a Brit with a foot on both camps, I hear a series of populist myths being peddled again and again. I often smell a red herring when I turn a newspaper pager. I often see the EU being used and abused by those who would attack a straw man.

So in making-up my mind about how to vote at the historic EU referendum, as a Brit, I would want to understand the costs as well as the benefits connected with the most important EU issues, namely:

EU costs
  • Is EU migration a good reason for Brexit?
  • Is EU benefit tourism a good reason for Brexit?
  • Is the housing crisis a good reason for Brexit?
  • Is EU health tourism a good reason for Brexit?
  • Are EU directives and regulations a good reason for Brexit?
  • Is the state of the education system a good reason for Brexit?
  • Is the EU the cause of austerity, low productivity and stagnating wages in the UK?
  • Is the UK paying more than its fair share and getting little out of the EU?
EU benefits
  • Is having the Euro (one currency in 19 countries out of 28) so bad?
  • Is being able to visit, study and work in 28 countries so bad?
  • Is being able to own a second home and retire in 28 countries so bad?
  • Is having common trade arrangements in 28 countries so bad?
  • Is having common environmental standards in 28 countries so bad?
  • Is having common consumer protection in 28 countries so bad?
  • Is reducing the time, stress, cost, etc. across 28 countries so bad?
  • Is the EU undemocratic, out of touch and beyond reform?
Key issues

 

  • Is Britain better or worse off within the EU?
  • Is the EU better or worse off with Britain in the EU?
  • Are you better off with Britain in the EU or not?

Questions and Answers

If I were the average voter, I would want an answer to these questions before casting my vote.

I would also want the answers to be simple, short and to the point but backed-up by evidence.

This is exactly what the AngloDeutsch Blog will seek to do from until the referendum.

This will be a challenge, given my professional and other commitments, but I shall do my best to cover as many of these topics as I can over the next few months, starting with the EU’s freedom of movement of people.

Dr Ricardo Pinto, AngloDeutsch™ Blog, www.AngloDeutsch.EU, 13 February 2016


I found refuge in the EU. You helped me. Now, let’s help the others.

© Ricardo Pinto, 2015, AngloDeutsch™ Blog, www.AngloDeutsch.EU

The Grexit crisis has blown hot and cold many times in recent years and will continue to do so for the foreseeable future. However, by common agreement, there is now an even greater crisis affecting the European Union (EU) and its future, namely the current refugee and asylum seeker crisis. It is not about economic migration; it is a humanitarian crisis.

A Refugee Crisis of Mega Proportions

I have been commenting on the issue of migration on the AngloDeutsch.EU Blog so I cannot but discuss this crisis of mega proportions. I would like to briefly summarize the points of the current situation before presenting a personal perspective below:

  • There is a variety of different types of migrants. The two main categories are “asylum seekers / refugees” who are fleeing something which makes them fear for their lives/safety and “economic migrants” who are seeking a better life for themselves and their families;
  • The difference is fundamental. Each EU member state makes its own decisions in relation to the issue of asylum seekers/refugees within the framework of broad international agreements which appear to be difficult or impossible to enforce. The same applies to economic migrants from outside the EU. Within the EU, a fundamental principle is that of “freedom of movement” of capital, goods, services and people. Consequently, there is no restriction of migration within the EU, except for recently joining countries, such as Croatia. Restrictions remain during a „transition“ period for some countries such as the UK, but other, such as Germany, have chosen to abolish such restrictions even before the transition period lapses;
  • Many politicians and some mainstream media, especially those with an ax to grind, deliberately or otherwise, lump the refugees/asylum seekers, economic migrants and freedom of movement into one giant, emotive issue: this is spurious, confusing and contributes to a heated debate in the EU and elsewhere. In an atmosphere of anxiety about migration in general, this is not helpful;
  • Most EU citizens, British and Germans included, make a clear distinction between economic migrants (there is concern about the level of migration in some countries) and genuine refugees / asylum seekers, where there is generally a good deal of sympathy;
  • The current levels of refugees / asylum seekers must be put into context: it is the highest level since World War II and is the direct result of various conflicts in Africa and the Middle East, not least in Syria, Afghanistan, Eritrea, Iraq, Somalia, etc. This is first and foremost a humanitarian crisis. For the first time since World War II, there are more than 50 million refugees, asylum-seekers and internally displaced people worldwide;
  • Some of the people joining this wave of desperate humanity are taking advantage of the situation. Having worked in Albania, Kosovo, Serbia, etc., all of which are making strides to join the EU, there is little doubt that the vast majority of these applicants are being opportunistic. If this sort of thing is allowed to continue, it may discredit the overall refugees/asylum situation and undermine the willingness to help others;
  • The latest development, since this blog focuses mainly on Britain and Germany, is that the German government has issued what is nothing less than an unprecedented commitment of take in at least 800,000 and possibly a million refugees/asylum seekers this year, not counting other forms of migration, which has been running at very high levels in recent years. By contrast Britain has taken 5,000 Syrians since 2011 and there is a major political debate about whether a target of 10,000 refugees / asylum seekers would be acceptable. The British government, under increasing pressure from ordinary citizens, has just announced that it will accept 20,000 refugees/asylum seekers over five-years (4,000 per year);
  • The main political explanations for this imbalance is that one (Germany) has a shrinking population and therefore needs to take in people but that the other (UK) is an overcrowded island that cannot absorb any more than are already coming in. There is a prominent political view that taking in refugees would not solve the problems in the relevant countries and would simply encourage even larger numbers to come to the EU;

It is up to each person to reflect on whether their respective governments’ policies are appropriate in the face of this human catastrophe, bearing in mind the costs involved as well as the potential knock-on effects on social, health, housing and other services, including the downstream integration issues. There will certainly be implications in the short-, medium- and long-term, since most refugees/asylum seekers that are accepted are likely to remain, even when the crisis is over.

A personal perspective

In the rest of this post, for a change, I shall not focus on the definitions, statistics and policy responses, etc. but the human element using my own migration experiences and those of my family. The point has been reached in this humanitarian crisis where everyone must pin their colours to the mast.

I was born in Mozambique. When I was nine years old, the civil war that quickly followed the war of independence reached stage where by parents finally decided that they had no choice but to abandon the country. There were a series of issues leading to this decision, but the straw that broke the camel´s back was a bomb that blew out the windows in the surrounding buildings. Fear for our safety, combined with a sense of growing injustice, led to a decision to leave everything behind, except for our lives and the clothes on our back. This is the “refugee / asylum seeker drive“ and it is this which is at the bottom of the crisis we are witnessing.

By the time I was 11, my parents had decided that living in Portugal was not for them and that they preferred to leave for the UK, where they felt they could rebuild their lives and offer their children better prospects. This is the „economic migration“ drive, which I shall leave for another day. My family and I have experience of both the “push” drive to get out of a country, as well as the “pull” element of a prosperous country like the UK (Portugal was not a EU member in 1977). As such, I can sympathize with the stream of people heading towards the EU.

Each of these families seeking the safety of Europe will have their own catalyst, but they are generally similar: fear of safety/life/well-being reaches a point where the extremely high barriers to leaving are overcome. Those barriers include family and friends (you leave the people you grew up with behind, probably for ever), possessions (home, furniture, mementos of life, etc.) and communities, traditions and all the other things that make-up everyday life. Only the bare minimum can be taken: people, clothes, food and money.

The decision amounts to rolling the dice that will determine their fate. They know that they may be turned back at any of numerous borders. They are only too aware that they will experience all sorts of privations. They come to terms the stark fact they or members of their family may perish on the way. Yet they are determined to head for Europe and more specifically the EU. Most will do what they are allowed to do, not least where women and children are involved. Some, especially single young men, may do whatever it takes to reach their goal, as the scenes in and around the Channel Tunnel prove.

But even if their drive, courage and determination (for that is exactly what is involved) is rewarded with success and they end-up in the EU and preferably in countries with the resources to successfully absorb them, they also know that it may all be in vain. After all, there is a high chance of being put on an aeroplane and sent home sooner or later, once the crisis is over.

And still they roll the dice, often taking their young children on this incredibly arduous and sometimes lethal journey. Imagine this, if you will, and reflect on what it would take for you to reach such momentous life and death decisions. I ask you:

  • Would you take these sorts of decisions without a very good reason?
  • Are the people who manage to reach Europe´s shores worthy of sanctuary?
  • And if so, are such people likely to have the drive to integrate and thrive in the EU?

Follow your instinct. Form your own opinion.

I am not just a migrant to the EU, I am a serial migrant within the EU. This is not a source of shame. On the contrary, it is a source of great pride which has given meaning to my life. Every country I have lived in had enriched me and, for my part, I have contributed to every country I have had the good fortune to experience. Migration has been and remains a constant feature of humanity.

There may be some seeking to reach the borders of the EU purely for economic reasons, rather than being driven by misfortune not of their own making. It is not so easy to separate out the genuine cases from the bogus ones. But the sheer scale of the crisis, the types of people involved and the risks that they are taking demonstrate that these are, in the main, fellow human beings in desperate need of our help. For them the EU is a beacon for all the things that we take for granted. There can and there will be a win-win situation for them and for the countries taking them in. Europe has absorbed countless waves of immigration in the past and benefited from them; it will continue to do so in the future.

Let us be humane and thereby reaffirm the fundamental values that EU countries are right to be proud of. You helped me. Now, let’s help the others.


British Voters and EUroscepticsm: much ado about nothing?

A Historic Turning Point Coming Up?

British voters are weighing up their options, but a strong element of anti-EU sentiment can be detected. The General Election scheduled for 05 May 2015 may well be turn out to be historic. If the Conservative Party wins, it is committed to holding a straight in/out referendum in 2017 about whether Britain is to remain in the EU or not. Previous posts have discussed the role of the eurosceptic Conservative wing and the role played by the Ukip party in the hardening Conservative and Labour Party stance in relation to the EU and EU-related immigration. Previous posts have also discussed a growing anti-Euro and anti-Islam sentiment in Germany, though it is materially different and not as pervasive as in the UK. No obvious anti-EU sentiment can be detected, which is why this post focuses mainly on Britain.

A reading of opinion polls illustrates that the balance of British public opinion, which has never exactly been EUphoric since joining in 1973, appears to be turning stringently EUrosceptic. The common assumption among quite a few politicians and a large segment of the media seems to be that life would become instantly better if only Britain would jettison membership of the EU, regain “control over its borders”, thus stopping “uncontrolled” migration along with excessive “interference” from Brussels in British affairs. But is this really the case? How much would actually change overnight, as far as the voters’ priorities are concerned?

Voter Priorities (2010-2015)

With the British general election not so far away, it is worth asking: just how much would actually change in people’s lives if the UK were to leave EU in terms of immediately improving life in Britain, based on the issues that matter to voters? To address this thought experiment, I have used the latest Ipsos MORI poll which asks about the top concerns of British voters.

British voter priorities 2010-2015

In January 2015 four issues predominated in terms what is important to voters, namely healthcare (almost half), economy (one-third) followed by asylum and immigration (27%) and education/schools (20%). Europe/EU as an issue is on par with unemployment, which at present is a pretty low rate in the UK (less than 10% note it as being important). A further five issues are of some importance in terms of voting intentions (benefits, taxation, housing, foreign affairs and pensions).

Table 1 shows some change since 2010, but the top four priorities have been fairly consistent. What is noticeable, however, is that whereas economy and education have not changed, both health and immigration have risen significantly in importance to British voters since 2010. Perhaps surprisingly, housing is increasing in importance but remains a secondary priority for British voters.

Voter Priorities and UK vs. EU Responsibilities

On the basis of the voter’s priorities, it is worth asking the question: what exactly are the responsibilities of the British Government and what is affected by the EU? On the basis of this question, it is possible to assess what might change for Britons.

UK EU competencies

Below I discuss these issues briefly, focusing first on the top four voter priorities:

  • Health: The Department of Health is entirely responsible for the NHS in terms of budget, priorities, reforms, etc. The main EU influence is in enabling the citizens of the EU-28 to be fully covered when they go to other EU countries without the need for additional health insurance for work, holidays, study, etc. It also allows people to choose where they wish to be treated, if the services are better or waiting lists are shorter. Health Tourism is an issue concerning non-EU citizens, rather than for EU ones. Nothing dramatic would change tomorrow, if the UK were to leave the EU in terms of quality of care, waiting lists, response rates or any of the other key issues of concern to the British voter. If anything, choice is likely to be reduced and extra costs incurred when British citizens travel to the EU. In terms of EU residents living in the UK and their use of the health service, not much would change. If they are working, they are also paying for the NHS through their National Insurance contributions. Otherwise, they would have to insure themselves privately and still have access to health in Britain. The exception would be if the UK chooses to deport, something that is barely imaginable. Verdict: no change. There are no magical solutions to the problems of the health service in Britain. The trends are neither recent nor connected with membership of the EU.
  • Economy: the UK is entirely in charge of its macro- and micro-economic destiny, since it is not part of the euro and thus not affected by the eurozone rules. The UK can affect its interest rates and implement quantitative easing to its heart’s content. The Stability and Growth Pact does have requirements, such as no budget deficits greater than 3% of GDP, no public debt exceeding 60% of GDP without diminishing by 5% per year on average over 3 years. Verdict: nothing would change. The UK and many other countries have greatly exceeded these limits at a time of serious economic and financial concerns. Britain is 100% in charge of its destiny, unlike Greece, Spain, etc. The Chancellor has already set in train further drastic reductions in public expenditure in the next period of Government. There is nothing about the programme of austerity that the British Government can pin on the EU, which is probably why this has not been tried, unlike for example Greece.
  • Asylum/immigration: as I have previously discussed, there are three elements here. Firstly, the UK is entirely in charge of its asylum policy and can choose who to let in and who to keep out. The same applies to non-EU immigration, which Britain is entirely in charge of. These elements comprised over 68% of immigration (together with Britons returning to the UK). The EU cannot and does not interfere with this but the balance (32%) is EU migrants. Many international companies are based in Britain that require access to the global pool of human resources to maintain their standards and profitability. On balance, basing a decision to leave the EU because of the freedom of movement of people principle and perceptions of “uncontrolled immigration” in the last decade does not appear to be justified. The unemployment rate remains at 5.8% (compared with 6.5% in Germany and 11.4% in the EU), despite a long period of intense economic and financial crisis. A critical issue that affects voter sentiment is net wages, which is determined by the companies located in Britain, as well as the public employers. If Britain were to stop EU and any other form of immigration (it is doubtful that employers would welcome this) the perceived pressures on health, housing and social services would not change since most EU immigrants would presumably remain. The exception is if such a police were to be combined with (forced) repatriation, which is unimaginable at the present time. If so, in theory Britain would have to make allowance for the 1.3 million Britons in other EU countries to return from EU countries to the UK. Verdict: possible short-term gain but likely long-term loss. The change would affect 32% of Immigration (2012 data) at the very most, but asylum and immigration would not end. There would only be perceptible changes, if a policy of terminating EU immigration were to be combined with deportation. I cannot imagine the average British voter wanting this or the consequences of enforcing such a policy.
  • Education/schools: this is entirely the responsibility of the UK and the pressures have been decades in the making. The issue that the EU has concentrated on is harmonizing qualifications and certification to ensure greater scope for freedom of movement of workers. This is advantageous for Britons as well as for others. Verdict: no change. The children of EU migrants make-up a small percentage of all children in schools across the country. If their parents are working here, they are entitled to study in Britain unless the Government and the British electorate wishes to evoke the deportation route.

So in terms of the most important issues to UK voters, there is not a huge amount of immediate gain from Brexit, based on the top four voter priorities. I am not even going to discuss the possible losses which would be the consequence of gaining control over EU immigration. Britain is already in charge of two of the three key elements of immigration, which makes up the majority of immigration. It is an island, which gives it more protection than others in the era of globalisation. The fear that there is uncontrolled immigration from the EU is overdone. When the economic downturn started, many EU migrants simply left the UK of their own accord and the migratory pattern turned towards Germany instead, the only EU country experiencing strong economic growth. When the UK economy started growing again in mid-2014, the immigration trend started reversing (though probably influenced by the A2 countries,namely Romania and Bulgaria). In any case, if the unemployment rate is 5.8% and decreasing, it is worth asking the question: who is employing the EU migrants and benefiting from their contribution to the economy, to tax inflows and to company profits? Might the answer be Britons and Britain? If the real issue is decreasing net wages and benefits in Britain, the question is who is gaining from this development? Might the answer be certain segments of British society?

Below I address the remaining voter priorities:

  • Europe/EU: The issue which the EU insist on is that the freedom of movement of people (as well as goods, services, capital) be maintained, allowing all EU citizens to travel for tourism, study, work and retirement purposes. Many, if not most Britons, enjoy some or all of these freedoms in one way or another. 1.3 million Briton live in other EU countries, and a large number travel, work, study, invest (e.g. second homes and pension funds) or retire in EU countries. This is something which is currently taken for granted at present. I believe the loss will be felt much more rapidly and keenly than most British voters may realise.
  • Unemployment: leaving the EU might result in less European migrants, but it would not put an end to EU immigration or lead to zero unemployment. British-based enterprises compete globally for many skills essential to maintain productivity and innovation. I doubt that there would be a significant reduction in qualified labour coming from the EU.It is not certain that the agricultural, tourism, hospitality, etc. businesses would be able to satisfy their needs simply from UK-based sources. There might be a reduction in less qualified labour and thus in unemployment but this is unlikely to be more one or two percentage points and will lead to other pressures. Verdict: possible short term gain but likely long term loss.
  • Benefits: very few EU migrants claim benefits. Immigrants were 45% less likely to receive state benefits or tax credits than UK natives during 2000-2011. They are also less likely to live in social housing than the UK born population. EU migrants of working age who are not students, not in employment and receive some kind of state benefit, amount to 39,000 or less than 1% of all foreign nationals in the UK and 1% of all EU nationals in the UK.  Recent analysis of 23 out of 27 EU countries shows that there are at least 30,000 Britons claiming unemployment benefit in countries around the EU. In other words 2.5% of Britons in other EU countries are claiming unemployment benefits, roughly the same as EU nationals doing the same in Britain. The numbers are tiny: the political and media coverage of this issue is completely disproportionate. If this is the case, an even smaller sub-set of them are living in Britain for benefit tourism/abuse purposes. Verdict: no change (but one less emotive topic for certain parts of the media and politicians to bang their biased drum about).
  • Taxation: the UK is in entirely in charge of all its taxes, including Corporate Income Tax, Income Tax, Capital Gains Tax and VAT. Verdict: no change.
  • Housing: The UK is entirely in charge of its housing policy, construction, planning system, etc. There would be fewer EU immigrants, which might affect the housing situation in terms of rent levels and house prices. However, this would only be a marginal effect since the trend in housing supply, demand and pricing is a long term trend of over 30 years and any nationality is able to buy property in Britain. I have already referred to the fact that fewer recent immigrants claim benefits and live in social housing than the UK born population. Verdict: no change. I have written the first of my blog posts comparing the British and German housing systems to illustrate aspects of this point.
  • Foreign affairs: in terms of foreign affairs this role is, to some extent, coordinated with the High Representative of the Union for Foreign Affairs and Security Policy for specific issues. In the main, each EU nation does its own thing and Britain is no different.
  • Pensions: the UK is entirely in charge of the retirement age, contributions, qualifying years, minimum state pension pensions, etc. The EU facilitates freedom of movement of people and capital, so develops rules to ensure that if people work in different countries, that their contributions are acknowledged and count towards their overall pension entitlement. Furthermore, it seeks to ensure, under the same two freedoms, that Britons and others can receive their state pension in any of the EU-28 countries without suffering from arbitrary reductions, cancellations, fees, etc. Since many Britons enjoy their retirement in the sun and have bought second homes in other EU countries (rather more than is the case in terms of EU nationals buying properties in the UK), it would appear that to be well worth remaining in the EU.

EUroscepticism: much ado about nothing?

Ultimately, it is up for each voter to assess their personal gain or loss from staying in or leaving the EU. Based on the analysis above, the anti-EU sentiment is much ado about nothing, as far as the most important issues to voters are concerned, except for the freedom of movement of people. The EU has helped to secure so many rights and opportunities across all 28 nations that it is hard to imagine life without them. It is not simply that not much would change overnight. A moment of reflection on what would be rolled back as a result of leaving the EU, should show just how much we perceive as being normal and do not even actively consider. The fact is that we usually do not miss that which we take for granted… until it is no longer there.

Ricardo Pinto, AngloDeutsch™ Blog, www.AngloDeutsch.EU

 

 

 

 

 

 


Freedom of Movement of People and Recent Immigration Trends in Britain and Germany

There is a great deal of discussion about immigration in Britain and Germany and the extent to which this is driven by the EU’s freedom of movement principle. In the case of the Britain, this is resulting in increasingly Eurosceptic public discourse due to perceived uncontrolled immigration and border, resulting in questions about whether to stay in the EU or  not. In the case of Germany, the concerns revolve around benefit abuse, especially the recent EU member countries such as Romania and Bulgaria, which acquired freedom of movement rights in 2014. This post examines EU and non-EU migration trends, including those from old, recent (A8) and new (A2) countries.

Recent Immigration has been at a Historical High

First things first: it must be noted that the net migration figures in Britain in the last decade are unparalleled. During the period until 1982, the UK actually experienced a net outflow of people. This means that more Britons, on balance, chose to leave Britain and were obviously received by other countries. Until 1997 there was an average net annual inflow of 50,000. With the accession to the European Union (EU) of the A8 countries (e.g. Poland, Slovakia, etc.) and, crucially, with the UK decision to allow people from these countries to work in Britain well in advance of being required to do so under the transition rules of the EU, this rose to a peak of 244,000 in 2004. It has been decreasing since then and reached 177,000 in 2012. The latest data suggest that net migration is increasing once again (209,000 in 2013), probably because of the influence of Romanian and Bulgarian immigration, combined with the fact that Britain’s economy is growing once again. Since these have much smaller populations that the A8 countries, this is not likely to last long. Broadly the same trend was evident in Germany but see below for variations, particularly in recent years where net migration has taken-off.

 Asylum seekers

In a previous post, we defined the key types of immigrant; asylum seekers are basically a sub-set of immigrants. According to Eurostat data, in 2013 there were 434,450 applications made to all EU-28 countries. The largest volume of applications was to Germany (126,705 or 29.1% of all applications in the EU), France (66,265) and Sweden (54,270). The UK received the fourth largest volume of applications (29,875) but this was noticeably less than the several other EU countries (6.8%). Given the size of its population and economy, the UK received a relatively modest number of applications during a humanitarian crisis which is considered to be the worst since WWII and is concentrated on Afghanistan, Syria, and Somalia. Nevertheless, the Office of national Statistics estimates that asylum seekers accounted for around 4.5% of UK immigration. The German equivalent is bound to be higher since it approves about 30% of the applications. But the fact is that the public perception of the volumes of asylum seekers is out of kilter with reality as discussed in a separate post.

Let us be clear about this part of the immigration debate: the Conservative-led Government does not propose turn asylum seekers away and, as an aside, neither does Ukip at the present time. The same applies to the German Government as well as AfD (and as far as I know PEGIDA) in Germany. This is only as it should be in humane, modern societies. It should be stressed that although there are international conventions governing this issue, each country makes its own decisions and determines which applicants to accept or not. Neither is this an area which the EU is involved in.

Net migration

The net migration is the difference between immigration (arrivals) and emigration (departures) since all countries exhibit a degree of turnover in their population. Ultimately, in terms of social and economic, cultural and other pressures that may build-up in a country, net migration is that really matters. Given our focus on UK and Germany, Table 1 shows two contrasting trends. Germany has been experiencing a very sharp increase in net migration during the period 2009-2012, a trend which has continued up to today. In 2014, the net migration in Britain reached 260,000 and 470,000 in Germany. We have seen in the previous posts, the public perception of asylum seekers and immigration in Germany contrasts somewhat with that of the UK. This is not to imply or suggest that immigration is not an issue in public discourse in Germany – far from it. However, in terms of public perception and public discourse, it is relatively equable, except in the case of the PEGIDA movement, which is specifically targeted at Muslims (see the recent a post on this issue), though there is a chance that it will implode following the resignation of, for the lack of a better expression, its colourful ex-leader. Generally though, the contrast with UK is evident. Yet the statistics show that new migration in the same period had been declining in the UK until 2014, undoubtedly influenced by Conservative party’s target of “tens of thousands” (i.e. up to 100,000) immigrants per annum, whereas it is increasing steeply in Germany. The German population rose to 81.1 million people in 2014, the fourth annual increase in a row, boosted by the highest level of net migration in more than two decades.

Table 1: Net migration in Britain and Germany (2009-2012)

  2009 2010 2011 2012
Germany 59,634 151,599 240,377 352,174
United Kingdom 229,000 256,000 205,000 177,000

Source: Table 7c: Net migration in European Union countries, 2002-2012, House of Commons Library, 2014

There be Foreigners in EU Countries: Freedom of Movement at work

Looking at the total figures, the countries with the largest number of foreign-national residents in 2013 were Germany (7.7 million), Spain (5.1 million), UK (4.9 million), Italy (4.4 million), and France (4.1 million). The countries with largest number of foreign-born residents were Germany (10.2 million), UK (7.8 million), France (7.5 million) and Spain (6.2 million). These figures include very large numbers of Britons (1.3 million), Germans (1.4 million) and other EU nationals living in other EU countries, not least in Spain and France. EU migrants accounted for 35% of the total migrant stock in the EU countries as a whole in 2010 living, studying, working and retiring in elsewhere than in their own country. This is, after all, one of the wonderful things that are taken for granted in the EU, right?

Of  Natives and Foreigners

Another interesting dimension is the proportion of migrants relative to the overall population. The table below illustrates that, overall, the UK and Germany had very similar levels of foreign-born inhabitants (12.3% and 12.4% respectively) as a percentage of the overall population. The latest figures are around the 14% mark for both countries.

Table 2: Foreign-national and foreign-born populations of DE and UK (at 1 Jan 2013)

  Foreign National, Number Foreign National % of total population Foreign Born, Number Foreign Born % of total population Total, Number Density of Foreign Born (x per 1000)
Germany 7,696,413 9,4 10,201,192 12,4 82,020,578 123
United Kingdom 4,929,710 7,7 7,828,376 12,3 63,896,077 124

Source: Table 10: Foreign-national and foreign-born populations of EU countries, at 1 Jan 2013, House of Commons Library, 2014

It should be noted that the percentage of foreign-born populations in the UK and Germany are in fact relatively modest compared with many EU countries such as Luxemburg (42.4%) and Cyprus (23.2%), both outliers, well as others such as Belgium (15.7%), Ireland (16%), Austria (16.1%), Sweden (15.4%), etc. The percentages do not appear to be out of line with similarly developed and advanced countries. Indeed, given Britain’s extensive colonial past, unlike Germany, Ireland, etc., suggests that the percentage could have been higher still. What is out of line though is the public perception of how many foreigners there are in the UK (47% more than is really the case), Germany (24%), something which is repeated in other European countries (see a previous post on the perceptions and reality of immigration). This misalignment in public perceptions and reality is even more pronounced when it comes to estimates of Muslims: UK (76% more than is really the case) and Germany (69%).

 EU and non-EU immigration

Another important dimension is the origin of the immigrants. Eurostat data demonstrate that in the case of Germany, a notable proportion of the immigrants (14.7%) are actually citizens returning to their own country. However, half are citizens from other EU countries, with the balance (34.8%) being non-EU citizens. The distribution is somewhat different in the case of the UK (16.1%, 31.4% and 52.2% respectively). In other words, Germany has mainly EU and own nationals as immigrants, whereas the UK has a similar proportion of nationals returning home, but a much larger proportion of non-EU immigrants. This may be explained by the greater influence of the old and new Commonwealth on the migratory patterns of the UK, as well as the economic malaise of the country in 2012. However, it should be made clear (see definitions post) that the UK is fully in charge of its own borders and of its own immigration policy when it comes to UK and non-EU nationals. The latter is not the responsibility of the EU.

The EU-related immigration (31.6% of the total) is the key element that the UK not in charge of because of the principle of freedom of movement of people, one of the four basic freedoms of the EU. Based on the data from 2012, the bulk of the immigration issue, as far as the UK is concerned, was not the EU and its freedom of movement, contrary to what one might conclude from the current political debate and the media reporting in the UK. The contrast with Germany, which does receive more than half of its immigrants from other EU countries, could not be greater. The German Chancellor and the President have gone out of their way to make it clear that asylum seekers and immigrants generally, including Muslims, are a part of the country. They have also made it clear on numerous occasions that the EU’s freedom of movement principle is not up for renegotiation.

Table 3: Immigration by Citizenship in DE and UK (2012)

Citizens of own country % Other EU countries % Non EU Countries % Total
Germany 87,245 14.7 298,541 50.4 206,389 34.8 592,175
United Kingdom 80,196 16.1 157,554 31.6 260,290 52.2 498,040

Source: http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=migr_imm2ctz&lang=en

The EU Accession Countries

The EU freedom of movement principle affected about a third of the immigration flows, whereas half were subject to immigration controls in Britain. Furthermore, the recent Accession countries that have been subject of such extensive debate in the media and political circles (the so-called A8 or Eastern European countries that acceded to the EU in 2004, including Poland, Slovakia, etc.) actually made-up 12% of all immigrants in 2012.

The above point reinforces the extent to which the immigration debate in the UK is distorted, though A8 immigration was certainly important during 2004 – 2010. Based on the data available relating to 2012, half of the immigration flows are entirely controlled by the UK and are subject to border controls. This has little to do with the recent Accession or “new” EU countries. Presumably the public is not particularly interested in reducing immigration from the “old” EU (15) countries such as France, Italy and Germany (i.e. 17.1% of the total). In terms of the recent members that are now eligible to work throughout the EU, namely Bulgaria and Romania (the so-called A2), 2014 started with a trickle of immigrants, but this increased steadily, so that net immigration is on the up. Consequently, the EU immigration debate has increasingly focused on the A2 countries where, in addition to the numbers involved, the implicit debate is often about the Roma communities from those countries.

Let us be clear about one thing: it is not the EU’s freedom of movement principle that has historically contributed the largest percentages of immigrants to the UK, except for a short period of time (2004 – 2010). This period coincided with a concerted effort on the part of the UK to actively court people from the A8 countries to migrate to the UK. The UK had made a political and economic decision that A8 immigrants were needed to sustain the economic boom and associated prosperity of Britain at the time. These decision cannot be used to subsequently blamed either the EU (after all, the transition arrangements were in place and the UK chose not to make use of them) or the people who heeded these official overtures from the duly elected British government of the time. Nothing can change these facts. The real immigration story, if there is one, is, has always been and will continue to be the old/new Commonwealth (ca. 26%) and the Other Foreign countries (another ca. 26%), as illustrated in the Table below.

Table 4: Immigration to the UK by Nationality, 2009-2012

2009 2010 2011 2012 % 2012
British 96 93 78 80 16.1
European Union 167 176 174 158 31.7
EU 15 82 76 83 85 (17.1)
EU A8 68 86 77 60 (12.0)
EU Other 17 14 14 13 (2.6)
Non EU 303 322 314 260 52.2
Old Commonwealth 30 31 29 31 (6.2)
New Commonwealth 141 156 151 98 (19.7)
Other Foreign 132 135 135 131 (26.3)
Total 567 591 566 498 100

Source: Table 2a: Immigration to the UK by nationality, 2000-2012, House of Commons Library, 2014

EU15: Austria, Belgium, Denmark, Finland, France, Germany, Greece, the Irish Republic, Italy, Luxembourg, Netherlands, Portugal, Spain and Sweden; A8: Eastern European countries that joined the EU in 2004, namely Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia; EU other: includes all other EU 27 countries (Croatia joined the EU later); Old Commonwealth: Australia, Canada, New Zealand and South Africa; and New Commonwealth: all Commonwealth countries not part of the Old Commonwealth, including those of the Indian sub-continent and African Commonwealth countries other than South Africa.

It would be great if we would refrain from denying the importance and value in economic, cultural and social terms of the EU’s principle of freedom of movement (of people, goods capital and services) to all European citizens. This applies particularly to Britons and Germans, who are themselves far from averse from making full use of the freedom of movement to study, work, retire and invest (e.g. second / retirement homes) elsewhere in the EU. For its part, the German government has always nailed its colours firmly to the mast, as have all other EU nations: freedom of movement is the foundation of the EU and is simply not up for discussion. To put it crudely, Britain can either like it or lump it, otherwise it has to leave the EU.

To make a decision about leaving the EU on the basis of a “swamping” by EU citizens or in response to “benefit tourism” (I a plan a separate post in the so-called abuse of benefits) and other vague anti-EU sentiment may make for good short-term domestic politics in a pre-election period but it is not logical or in Britain’s long term interest. I agree that there are criticisms to be levelled at the EU and that there is a legitimate debate to be had about the role of the nation-state and the principle of subsidiarity but the EU immigration debate is being used excessively to castigate the EU.

Conclusions

I am only too aware of the quotation: “There are three kinds of lies: lies, damned lies and statistics.” I do not expect all readers to be swayed let alone persuaded by the statistics that I have presented above, not least because some of them are quite dated as per the December 2014 House of Commons Library report used. I am sure that others can and probably will make an even more convincing case that Britain continues to be “swamped” by immigrants, that the key problems are the EU and the freedom of movement and that the sooner the UK takes full control over its borders and immigration policies, the better the UK will be much the better for it. So I only ask for consideration to be given to the following issues:

  • The numbers of asylum seekers has declined to pretty small numbers in the UK but an opposite trend is taking hold in Germany, especially because of the Syrian crisis. The numbers accepted by Britain are relatively small but larger in Germany. There is broad consensus about the importance of receiving asylum seekers as long as they are not bogus.
  • The UK had a major surge of net immigration during 2004-2010 and much of this was from the new EU member countries. The UK did not have to let in immigrants from the A8 countries at the time but chose to actively court them to come, live and work in the UK so as to satisfy its overheating labour market and prolong its economic boom at the time. The flows have declined dramatically since 2010, as has overall net migration to the UK but are increasing again, not least because the British economy is growing once again and Britons are employing the immigrants.
  • There is now significantly less immigration from the A8 countries such as Poland, so the debate has moved on to the A2 countries, namely the Bulgarians (population of 7 million) and Romanians (population of 22 million) and implicitly the Roma community (population of 10-12 million in the whole of Europe). The debate on welfare tourism and EU’s freedom of movement will continue in the UK and Germany, though in the latter case it focuses on specifically on benefit fraud/abuse.
  • The majority of immigrants to the UK in 2012 were either UK nationals or non-EU immigrants from the Commonwealth (68.3%) and beyond. This is an issue which the British government is entirely responsible for and exclusively in charge of its own borders. It is not an EC/EU issue.
  • Unlike the UK, the number of net migrants is peaking in Germany, contributing to population growth in the last four years. There is a lively debate about immigration and the PEGIDA movement has been growing. However, there is nowhere near the same degree of emotive talk on immigration, of being swamped, of uncontrolled immigration and so on, despite having almost identical levels of foreign-born population and absorbing increasing levels of immigration.

At the end of the day, the issue is not so much about numbers but about perceptions, emotions, geographical concentrations, etc. There are very real stresses and strains in society at large in Britain and Germany and immigration is a contributor to them. The politicians and media are tapping into those voter concerns but merely debating the symptoms of those concerns by focusing almost exclusively on the ills of the EU, the freedom of movement of people (but not capital, of course) and EU immigration. Would life suddenly be that much better in terms of housing, education, health, wages, employment, benefits, taxes, social services, environment, transportation, etc. as a result of leaving the EU (see the related post on the British Question)? Since the EU has either limited or no responsibility at all for almost all these I very much doubt it. The real causes of the stresses and strains, greatly exacerbated by austerity in Britain and long-term real reductions in net incomes in Germany, will be the topic of future blog posts. I believe that the real causes are to be found much closer to home than either politicians or much of the media care to acknowledge, especially in the build-up to a General Election.

Ricardo Pinto, AngloDeutsch™ Blog, www.AngloDeutsch.EU


The British Question: shall we stay or shall we leave the EU?

Since joining the European Union (or EEC at the time) in 1973, the United Kingdom has had an ambivalent attitude to being a member of the European Union (EU). The British general election due in May 2015 will determine whether Britain will hold a referendum over whether to stay or leave the EU. The skirmishes over the “British Question” or “Brexit”, in other words, whether Britain is to remain a part of the EU or not started long before the General Election.

EU Red Lines for Britain Staying

When Mr Jean-Claude Juncker sought to become the President of the European Commission (EC) his election manifesto had five priorities, the first four of which were:
• Creating jobs and growth.
• A European energy Union (diversify our energy sources, and reduce the energy dependency).
• A balanced trade agreement with the USA.
• Reform of the monetary union with a greater focus on social aspects (governance in the Eurozone beyond the ECB, reform of support to Eurozone countries in financial difficulties to take into account of the social impacts and strengthen the Eurozone’s voice in the IMF).

So far so good – nothing unexpected there. However, it is Mr Jean-Claude Juncker’s fifth priority (reproduced below with the original emphasis) that was a little bit unexpected and gave rise to the title of this post.

A fifth and last priority for me as Commission President will be to give an answer to the British question. No reasonable politician can ignore the fact that, during the next five years, we will have to find solutions for the political concerns of the United Kingdom. We have to do this if we want to keep the UK within the European Union – which I would like to do as Commission President. As Commission President, I will work for a fair deal with Britain. A deal that accepts the specificities of the UK in the EU, while allowing the Eurozone to integrate further. The UK will need to understand that in the Eurozone, we need more Europe, not less. On the other hand, the other EU countries will have to accept that the UK will never participate in the euro, even if we may regret this. We have to accept that the UK will not become a member of the Schengen area. And I am also ready to accept that the UK will stay outside new EU institutions such as the European Public Prosecutor’s Office, meant to improve the fight against fraud in the EU, but clearly rejected by the House of Commons and the House of Lords. We have to respect such clear positions of the British Parliament, based on the British “opt out” Protocol. David Cameron has recently written down a number of further key demands in an article published in the Daily Telegraph. As Commission President, I will be ready to talk to him about these demands in a fair and reasonable manner. My red line in such talks would be the integrity of the single market and its four freedoms; and the possibility to have more Europe within the Eurozone to strengthen the single currency shared so far by 18 and soon by 19 Member States. But I have the impression that this is as important for Britain as it will be for the next President of the Commission.

 

This was a remarkably explicit statement from a man seeking high political office at a point in time when he was far from certain of being successful in his bid to lead the EC. This uncertainty was largely due to a high-profile initiative on the part of the British government, led by the Prime Minister himself, to ensure that Mr Juncker did not become the President of the EC. Yet Mr Juncker won resoundingly, despite colourful rumours floating around about his alleged drinking habits.

There was a steely underlying determination to recognise but not pander to UK demands: the four freedoms of movement (of capital, people, goods and services) are non-negotiable, the UK can continue to opt out, but the Eurozone will continue its march towards further integration, so as to strengthen the Euro. But it is interesting to note the absence of a broad commitment towards “an ever-closer union”, 1957 Treaty of Rome, except in the context of the Eurozone countries.

Six months into his mandate as President of the EU, Mr Juncker has underlined his views of the British Question. On the 18 January 2015, he publicly floated the idea of a British exit (or Brexit) from the EU for the first time. Mr Juncker not only compared Britain’s membership of the EU to a “doomed love affair” but also suggested that it might be time to call it a day. He rounded off his comments by warning David Cameron that he will not be “grovelling” for the UK to stay in the EU during future negotiations. What was previously a personal “red line” prior to his election to the most influential of the EU’s Presidential posts, has now become the official EU one.

British Red Lines for leaving the EU

An answer to the British Question it is due now, in the run-up to the British General Election on 05 May 2015. Britain has been largely ambivalent towards the EU, tending to focus on the economy and trade issues and, for a period of time when it suited its economy and voters, enlargement of the EU. Due to a combination of the Eurosceptic wing within the Conservative Party and the growing influence of the Ukip, should they win the election, the Conservative Party has pledged to allow the voters a referendum on whether to stay in or leave the EU unless the current terms of membership are renegotiated. There is, of course, the possibility that the Conservatives will not win but the ambivalence towards the EU is more than likely to remain. Mr Juncker’s red lines are presumably of importance, regardless of whether the Conservatives win the general election or not.

The Conservative attempts at EU reform which would satisfy its Eurosceptic wing and win back Ukip defectors included renegotiated of the terms of EU membership, such as the principle of freedom of movement of people. The explicit aim was to find an acceptable half way house between “uncontrolled” and “no” immigration.

David Cameron has stressed that he favours staying in a reformed EU but that Britain will “rule nothing out” if the changes required are not made, some of which will necessitate EU treaty changes. There are several problems with this position, which the British Government is well aware of: treaty change requires the agreement of 28 member states, all member states are highly averse to such treaty changes because of the debacle of the aborted attempt to develop a EU constitution, several countries are required to hold referendums in relation to such changes and, quite simply, there is not enough time to undertake such changes before the UK referendum is due in 2017. Apart from anything else, why should other member states do anything unless and until there is a Conservative Government in power post May 2015? The insistence on EU treaty change appears to be a lot of hot air blown by the British government, which other politicians and the EU representatives are willing to play along with. There are obviously messages to be put out to the British voter between now and the general election.

For the British is it a serious matter: asylum and immigration are among the top four issues that are likely to determine the outcome of the general election. Consequently, the PM David Cameron has set out his own (latest) version of his “red lines” most recently in November 2014:

  • Workers from the EU: ban EU nationals from claiming in-work benefits or social housing in Britain for four years. No child benefits or tax credits paid for children living outside the UK.
  • Unemployed EU migrants: deport jobless migrants if they do not get work for six months.
  • Other: veto EU enlargement unless the new country impose controls on the movement of their workers until their economies reach UK levels, restrict EU migrants bringing in family members from outside the EU, longer bans on rough sleepers, beggars and fraudsters returning to the UK and tougher rules on deporting foreign criminals.

Notice that there is no mention of EU treaty changes, change to the principle of freedom of movement or renegotiation of the current terms of EU membership. The British Red Lines are highly specific and, to my mind, do not amount to a radical change in the British position within the EU. For the British government it seems as it the British Question or whether to remain in the EU or not simply boils down to these issues.

Early skirmishes over the red lines

The British Question is already being addressed by the two most influential people, namely Mrs Angela Merkel and Mr Jean-Claude Juncker. The German Chancellor Angela Merkel has made the position of the German government clear. In the same way as Mr Juncker and any other leader of the other 27 EU members, in her 07 January 2015 visit to the UK she said at the joint press conference with Mr Cameron: “We have no doubt about the principle of freedom of movement being in any way questioned.” Taking his cue from those words, in a speech on 18 January 2015, Mr Juncker said: “When one mentions the end of the free circulation of workers, there can be no debate, dialogue or compromise.” Not much wiggle room for Mr Cameron there. He added that: “We can fight against abuses, but the EU won’t change the treaties to satisfy the whim of certain politicians.” No other EU nation state has questioned the freedom of movement principle. Mr Juncker also added a dimension which is rather pertinent to Britain’s economy, dominated as it is by the financial industry: “if you question the free movement of workers, Great Britain has to know that one day the free movement of capital will also be called into question.” Do I detect an attempt by the EU to outflank Britain?

The Conservative Party if left with a weak hand: despite the threat to pull out of the EU if it does not get its way; its bluff is being called. Britain is on to a loser in terms of both treaty change and/or reform of the freedom of movement principle. The British government knows it, hence the reasons for the watered down version of Mr Cameron’s red lines above.

The only chink of light for the British government is in relation to cracking down on welfare abuse by EU migrants (but many doubt the extent to which this is widespread abuse). But even here, Britain is not being handed carte blanche. The possibility of tackling EU migration abuses been conceded by the German Chancellor, whose country is holding a similar debate connected with the end of the transition arrangements for Bulgaria and Romania: “We are looking at the legal (aspect) and we are looking at legislation here … abuse needs to be fought against so that freedom of movement can prevail.” But there is a sting in the tail for Britain – Mrs Merkel added: “One has to take a very close look at the social security systems of individual member states … and to what extent they have to be adjusted. And that’s something we need to address”. It hardly amounts to a ringing endorsement of reforms that might involve EU treaty changes before a possible 2017 referendum. It sounds as if the emphasis is placed on individual nation states (Britain and Germany?) getting their own house in order in terms of their welfare benefit eligibility rules and regulations.

It is still early days in the battle of the red lines over the British Question, though some of the early skirmishes have already been decisive. The latest British position appears to be mainly designed for domestic consumption in the run up to the General Election. However, the red lines are of importance, so I plan to address them in future posts.

Ricardo Pinto, 21 January 2015, www.AngloDeutsch.eu


Mixing Apples and Pears in the Immigration Debate

The great immigration debate is becoming increasingly heated in Europe. It tends to lump all immigrants into one group, mixing apples and pears, and  making little allowance for the important differences in the type of immigrant. The differences between refuges, asylum seekers, migrants and economic migrants are sadly either misunderstood or misrepresented by the general public and the media. Furthermore, the conflation of immigration with the European Union’s (EU) “freedom of movement” principle adds to the general fuzziness of the debate. This loose approach to the differences is contributing to the growing antipathy to immigrants and to the EU itself.

Definitions

We appear to be on the threshold of a much more unrestrained debate on immigration. If so, we may as well be clear about the definitions of the main types of immigration involved, prior to looking at the perception of the level of immigration in the next post. There are four main types of individuals that the media and the politicians refer to, but which tend to be lumped together in the public discourse, despite their heterogeneity. The International Organization for Migration is the leading international organization for migration and defines the following important groups:

Asylum seeker: is a person who seeks safety from persecution or serious harm in a country other than his or her own and awaits a decision on the application for refugee status under international and national instruments. If the decision is negative, the asylum seeker must leave the country and may be expelled, as may any non-national in an irregular or unlawful situation, unless permission to stay is provided on humanitarian or other grounds.

Each country determines their own policy in relation to asylum seekers, though international conventions exist. What the media and politicians rarely acknowledge is that asylum seekers are normally a relatively small percentage of the immigration issue. Almost all Brits and Germans support a policy of supporting this group. What they do not support, is illegal immigration such as asylum seekers staying on after a negative decision. Each country determines its own asylum seeker policy and has little or nothing to do with the EU.

Refugee: is a person who, owing to a well-founded fear of persecution for reasons of race, religion, nationality, membership of a particular social group or political opinions, is outside the country of his/her nationality and is unable or, owing to such fear, is unwilling to avail him/herself of the protection of that country. Each country determines their own policy in relation to refugees, though international conventions exist. Again this is a small part of overall immigration, though the percentage does fluctuate according to crises (about 30,000 applicants in the UK but about 120,000 in Germany in 2013). In 2012 the main country of origin was Afghanistan and at the moment it is Syria. The overall number for 2014 could top 700,000, “the highest total for industrialized countries in 20 years and not seen since the 1990s conflict in former Yugoslavia” according to the United Nations High Commissioner for Refugees (UNHCR). Nevertheless, the great majority Brits and Germans support a policy of accepting legitimate refugees.

Migrant: there is no universal definition but the term usually cover cases where the decision to migrate was taken freely by the individual for reasons of “personal convenience” and without an external compelling factor; it is applied to persons, and family members, moving to another country or region to better their material or social conditions and improve the prospect for themselves or their family.

Each country determines its policy in relation to non-EU migrants. If the numbers are perceived to be too high / low, this is a reflection of the policy priorities of each nation. The situation is different for EU nationals. One of the four “fundament freedoms” of the EU is that of freedom of movement of people (the others being capital, goods and services). These are at the core of the EU, and Brits and Germans have been among those making the extensive use of them such as buying second homes, retiring in the sun, working abroad, etc. EU nations, not least Germany, have made it clear that this freedom is non-negotiable. Britain is questioning whether this freedom can be reformed but is currently in a minority of one out of 28 EU nations. As things currently stand, Britain must decide whether to accept all four freedoms or none of them. What is clear is that it is not feasible to have an explicit immigration policy of 100,000 net migrants per year when Britain is not in a position to control its own borders in relation to non-EU immigrants and thus unable to influence the number of people entering (or leaving) the country from the EU. Moreover, it is Britain and Germany that are broadly in charge of their welfare benefit eligibility rules, not the EU.

Economic migrant: is a person leaving his or her habitual place of residence to settle outside his or her country of origin in order to improve his or her quality of life. This term is often loosely used to distinguish from asylum seekers, and is also used to refer to persons attempting to enter a country without legal permission and/or by using asylum procedures without good cause. It may equally be applied to persons leaving their country of origin for the purpose of employment.

Each country controls its own borders in relation to non-EU economic migrants. Britain and Germany have made and continue to make extensive use of this as exporters and importers of well-qualified workers. Without a work visa, which is issued by each nation-state, there can be no economic migrants from outside the EU. Britain and Germany choose to allow people to come into the county on work visas for them and their respective families because it is in their economic interest to do so.

The situation is different for EU economic migrants, since the freedom of movement applies to everything, including tourism, study, retirement and work. Inevitably, some countries will be more popular or economically dynamic than others and the economic migration trend will vary over time. It is generally understood to be a good thing that those in high unemployment regions can migrate to low unemployment regions within a country, so as to get a job. If this is so, then surely the same applies to the EU region (28 countries) as a whole.

You cannot have your freedom of movement cake and eat it at the same time: either you accept the whole package or you reject it. Britain must decide whether it wants in or not; if not, as things currently stand, the consequence is that Brexit (British exit from the EU) will occur as surely as night follows day. Either way, economic migration will continue from non-EU and EU countries because it is in the economy and society’s interest for it to do so. The flip-side of Brexit is theoretically that Britons currently living and working in other EU countries might have to return to Britain. An estimated 1.1 million Britons were living in three countries of the EU, namely Spain, France and Germany alone.

Mixing Apples and Pears

It is obviously important to distinguish these various categories, but a cursory exploration of UK and German media and politicians’ statements suggest that the distinctions do not appear to be understood, let alone respected in the popular discourse about migration.

The route of capping non-EU immigration is theoretically and practically possible; many countries do so, and it is up to the politicians to implement this if their electorates insist upon it. Having created a “target” of 100,000 for the first time in British history, the failure or otherwise to achieving it is the responsibility of the British government and theirs alone. It has nothing to do with the EU since the freedom of movement has always existed from the very beginning, something that surely must have been known to the British Prime Minister, David Cameron, who in his wisdom, created this particular target in the first place.

Presumably it was a political calculation because of the recent influence of Ukip in British EU and immigration politics. But by doing so, the British Government appears to have achieved little more than to create a large rod for its own back. Ukip has got firm hold of this particular rod and is gleefully availing itself of the opportunity. The Conservative-led government is simply reaping the political whirlwind of an ill-advised, but apparently populist policy. The recent bye-elections have gifted Ukip increasing power and influence, and represent evidence of the folly of such a policy. Attempting to steal the Ukip emperor’s clothes may reinforce the trend and further entrench public opinion, which is increasingly negative towards both immigrants and EU. As discussed in the last post, the two are increasingly portrayed as part and parcel of the same issue by politicians and the media.

Capping EU immigration is simply not feasible without leaving the EU and it is a case of political smoke and mirrors to suggest or pretend otherwise for short-term political gain. It leaves Britain increasingly diminished in the eyes of its other 27 partner nations. Britain and Britons must make-up their mind about whether the British Isles, the so-called special relationship with the USA and the old (and new?) Commonwealth represent a better alternative to the four freedoms offered by the EU28. The Germans are bound to the EU at the hip (and increasingly the other way around). It is inconceivable that such a debate would seriously take place there in the short or medium term, though there is certainly a growing debate about leaving the Euro, driven by the Alternative for Germany (AfD) party.

Releasing the Genie?

The UK cannot go on pretending that it can have it both ways. It is irresponsible for politicians and certain parts of the media to lump all types of immigrants together, paying little attention to the major differences between them, which also deriding immigrants in general and the EU and the European Commission in particular. Society is responding to these populist messages. Scan the comments made in response to newspaper articles, listen to live radio interviews and the views increasingly aired on TV and you will catch the general drift in respect to the twin themes of the EU and immigration. David Cameron, Nick Clegg and Ed Miliband (and indeed Nigel Farage, who is married to a German) seem set on allowing this trend to continue in the period leading up to the UK general election. The question is: will it be easy or indeed possible to put the genie back in the bottle thereafter? Personally, I am far from convinced the everything will be back to normal after May 2015.

Ricardo Pinto, AngloDeutsch™ Blog, www.anglodeutsch.eu