“Clear the way for posting workers across Europe? Far from
it! Hurdles for employers remain high.
Chancellor Friedrich Merz (CDU) emphasizes at every EU
summit just how important the single market is for the economy. What’s more, he
claims to be the driving force behind ‘One Europe, One Market’—the roadmap
intended to boost the EU’s competitiveness.
So much for the headlines. When it comes down to the
details, however, the German government shifts from driving force to naysayer.
National sensitivities take precedence over lofty European goals. The single
market train is hitting the brakes. Worst of all, this is happening at the very
first opportunity.
The
compromise recently reached by the European Parliament and the Council of
Ministers regarding the posting of workers within the single market illustrates
this starkly. The Commission’s idea for a digital form to register workers in
the host country was a good one. Currently, employers have to grapple with 27
different national forms and 300 reporting requirements. In the future, there
was supposed to be just one form requiring 30 data points.
The fatal
flaw is the voluntary nature of the system
This move
would have allowed the EU to eliminate one of the single market’s biggest
obstacles. Europeans would have demonstrated that they were serious about the
single market this time around. Instead of embracing the initiative with
enthusiasm—and perhaps even further reducing the required data points—EU member
states did the exact opposite. With active assistance from Berlin, they ramped
the list of reporting requirements up to 41. That may be an improvement over
300, but it is still not enough.
The central
flaw lies elsewhere: it remains entirely up to the individual states whether or
not to use the digital form.” They can also stick with the existing national
forms. Consequently, the extent to which employers will actually be relieved of
the burden remains completely open. A degree of skepticism is warranted. After
all, why should the main obstacles in the negotiations—France, Spain, and
Italy—suddenly open up their markets and make it easier for competitors to
enter?
Merz can then use the next EU summit in October to remind
the other leaders of their commitment to the single market and urge them to
take action. However, if he wants to appear credible, he needs to back up his
words with deeds next time—when it comes down to the specifics.”
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