Brussels, 05/03/2002 (Agence Europe) - The Commission has published a study entitled, "Undeclared labour in Europe: Towards an integrated approach of combating undeclared labour". The report was prepared by a Dutch consultant company as a follow-up to the 1998 Communication on undeclared labour (see EUROPE 6-7 April 1998 page 9). The purpose of the study is to review policies to combat undeclared work and to evaluate the effectiveness of specific policies. The conclusions will be integrated into the Communication the Commission is presenting in July on the assessment of European strategy on employment and modernisation. Anna Diamantopoulou emphasised that, "Member States must increase efforts to quantify undeclared work, cut it down and transform it into regular employment."
Andrew Fielding, a spokesman for the Commission explained that the starting point of the study was to define exactly what undeclared labour was and identify all legitimate activities that receive payment but are not declared or not notified to the appropriate public authorities which are subsequently unaware of the consequences. The consultancy firm that carried out the report sent a questionnaire to seven countries - Germany, France, Italy, Spain, Sweden, the Netherlands and the United Kingdom. Mr Fielding explained that the countries were chosen in view of obtaining a balance between countries in the North and South of Europe. He also declared that evaluating undeclared labour was difficult because certain figures did not always reflect the extent of the phenomenon. Mr Fielding provided us with the following figures for undeclared work: France 14.7% GDP; Germany 14.8%, Italy 27.2%, the Netherlands, 13.8%; Spain 23.4%, Sweden 19.5% and the UNITED Kingdom 13%. The report also mentions the sectors most affected: agriculture, community, social or personal services (cleaning and care), construction and manufacturing, retailing, transport, hotel, tourism and catering. One of the objectives of the study is to outline the term "mixed policies" for fighting against undeclared labour. The optimal approach would consist in setting sanctions and controls, as well as preventive action. The study has therefore put forward the following recommendations: simplification of procedures and legislation, exchange of information and improving communication; greater co-operation between the authorities and the active participation of social partners. Prevention measures could include reducing social charges (social security contributions) and advice to workers, such as immigrants and the long-term unemployed who wish to enter into declared employment. Italy is singled out for its initiatives over the last two years and the enormous efforts it has made to fight against this kind of work by adapting the measures to the specific characteristics of the different regions. The Commission will now seek to quantify this "shadow economy" much more accurately and incorporate the report conclusions into the conclusions for a European Employment Strategy.