Martin Kahanec (Public Policy) concludes a research project funded by the EC: A call for liberalization of EaP-EU mobility

Martin Kahanec (DPP) delivered a flagship research report at the final seminar of the ENPI project “Costs and Benefits of Labour Mobility between the EU and the Eastern Partnership Partner Countries” funded by the European Commission in Brussels on June 25, 2013.

The research project calls for a liberalization of EU labor market access for the Eastern Partnership (EaP) countries comprising Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine. It concludes that (i) the balance of costs and benefits is positive for both sending and receiving countries; (ii) costs can be reduced, and benefits maximized, by the use of appropriate policies that facilitate mobility and integration, and that help manage the economic consequences of large remittance flows; (iii) labor migrants from the EaP countries could help the EU member states fill skills gaps as the demographic transition intensifies in Europe.

This large-scale international project included eleven country case studies and a number of background studies, including own data collection by means of field research and an online expert opinion survey. Based on the gathered evidence, the project proposes a liberalization of mobility between the EU and EaP countries as a first-best policy alternative. This should include the adoption of a visa-free travel regime, a stepped-up engagement with the EaP countries through EU-level, multilateral and bilateral mobility frameworks, expanding on the Blue Card directive. Additional measures proposed by the research team include work permit facilitation, programs for specific professions and sectors, as well as simplification and increased transparency of immigration procedures. At the same time, the EU countries should enhance their migrant integration policies, including skill transferability, recognition of social rights, reduction of informational gaps, management of public opinion, and involvement of relevant stakeholders.

The team of researchers led by CEU’s Associate Professor Martin Kahanec and Klaus F. Zimmermann (IZA) also simulated future migration flows from the EaP countries under different scenarios. They estimated that the inflow would remain modest even under full liberalization of access to EU labor markets. However, more open labor markets would significantly increase GDP gains and decrease inflationary pressures while having negligible effects on unemployment.

All findings, including the two key reports and the country studies, are available for download. The research project was executed by a consortium involving CEU Budapest, IZA Bonn, CASE Warsaw, and LSEE London.