Tuesday, February 10, 2009

EU's struggle to maintain border-free market

With British strikes against foreign workers and France hinting at protectionism in the car sector, the economic crisis is putting the EU’s golden rules of free movement of workers and trade to the test.

So far the European Commission has played its role as guardian of the European Union’s treaties, defending the bloc’s single border-free market for goods, services and labor.

In the face of British wildcat strikes against Italian and Portuguese energy sector workers, the EU executive said last week that it’s not in creating barriers and trying to hold back the single market that protects Britain against the crisis. It also warned against French plans to support the car industry, after French President Nicolas Sarkozy said there would be no aid for carmakers that turn around and open a new factory in Czech Republic or somewhere else.

Czech Prime Minister Mirek Topolanek, whose country holds the EU’s presidency, hit back with serious doubts about political involvement in the management of commercial companies and breach of rules of free competition.

Taking France’s lead, Italy announced similar conditions for aid to its automobile industry. The trend is putting growing pressure on the commission to be more flexible about government support for struggling industries just as its president Jose Manuel Barroso and other senior staff seek second mandate.

While unemployment rockets in Spain, Italy and Greece have already seen riots. Meanwhile the temptation of populist policies in Eastern Europe could become huge as the religion’s dream of catching up with western countries evaporates.

The Commission which the policies EU members’ public finances has already been easing up on governments about their deficits, which have spiraled in the face of costly bank bail-outs and economic stimulus measures. Under pressure from several countries, the commission has accepted that governments’ deficits will balloon well over the three per cent of output that they are supposed to respect.

So far the European Commission has been quite good at defending. Nobody is even remotely saying that the EU should not have free trade and that free movement of workers should stop.

Related Posts:

  • EU's struggle to maintain border-free marketWith British strikes against foreign workers and France hinting at protectionism in the car sector, the economic crisis is putting the EU’s golden rules of free movement of workers and trade to the test.So far the European Co… Read More
  • HOW RECESSION AFFECTS UAE?This is a forwarded e-mail from my friend, Vinoj. For Vinoj, thank you so much for sharing this information. This is all about the projects in the United Arab Emirates which are currently on-hold or canceled. Some of these pr… Read More
  • ARE YOU AFRAID TO LOSE YOUR JOB?Well, for all those who got the most rewarding job in their life, recession may not affect them. Even their company decides to fire them they may have nothing to worry because all those good years of their service, they have … Read More
  • DUBAI: NEW VISA RULE TO BE IMPLEMENTEDFor individuals from the sub-continent (India) and other countries of the world who are seeking for immediate employment in Dubai, you need to be aware that effective end of July 2009, a new visa rule is to be implemented. Th… Read More
  • Coping with global crisisThe global financial crisis of 2008–2009 is an ongoing major financial crisis. It became prominently visible in September 2008 with the failure, merger, or conservatorship of several large United States-based financial firms.… Read More

0 comments: