Brussels, 24/10/2007 (Agence Europe) - On Wednesday 24 October, the European Commission adopted two communications, one on the outcome of the public consultation exercise launched in November 2006 on updating existing labour law, and one on determining the main factors encouraging the black economy, defining ways of reducing its scale and suggesting follow-up measures at EU and national level (see EUROPE 9529 for details). Speaking at a press conference, EU Social Affairs and Employment Commissioner Vladimir Spidla stressed the importance of communicating, and ensuring people had better understanding of the impact of undeclared work which affects a worker's social status and security. One of the objectives of the communication, said Spidla, had been to demonstrate that declared work paid off. In answer to questions from reporters, the commissioner explained:
Bulgaria was the EU member state which had by far the highest percentage of undeclared workers. This was an issue to be dealt with from the EU Social Funds, said Spidla, commenting that 35% of Bulgaria's GDP was generated by the black economy. He said that this did not mean the Commission launching infringement proceedings against Bulgaria, but it was a serious problem for the Bulgarian authorities, who would have to solve it in order to avoid having a problem with the stability of social systems in the long-term.
Commissioner Frattini's new proposals on the socio-economic rights of workers from outside the EU (see EUROPE 9529) concern entrepreneurs using illegal workers off the books. This is a different issue from Spidla's communication, he said, because the latter covered all member states and was more widespread than simply among immigrants. Spidla added that working off the books was not a question of the freedom of circulation, but was an issue that was found among all workers in all member states.
A decent, well-calculated and well-targetted minimum wage can be useful in combatting undeclared work. Such a minimum wage would mean many workers working illegally would choose to work legally, but if the minimum wage were too low, it made it difficult for them to pay their tax bill. The United Kingdom has introduced such a minimum wage, resulting in greater labour force participation, he claimed. The commissioner said the Commission was not planning to introduce a minimum wage throughout all EU member states because this was a competence of the member states, which will decide on the solution that suits them. (G.B.)