Abstract
Free movement of persons is a fundamental freedom and equal treatment its necessary corollary. Yet, both principles have come under pressure in the past decades. This article investigates three forms of mobility within the European Union (EU): workers, economically inactive persons and posted workers. In respect of all three categories, there is a tension between social and market interests, which appears most clearly when comparing their right of equal treatment. The balancing between market and social values is at the core of this research. We expect that the social market economy will, on the one hand, explain the ‘why’ in discussing the right of equal treatment of free movers and its limitations. On the other hand, the social market economy also has a normative dimension, which enables us to discuss perspectives on how equal treatment can develop, and make some propositions. We argue that the social component in the market economy requires a revision of what is seen as fair competition in the direction of outlawing social dumping. We also find that the persistence of the market elements pleads for the right to free movement of persons, which does not substantially disturb the economy of the host Member State.
Highlights
Free movement of persons is a fundamental freedom of the EU
If workers have the right to work in another country, but can be denied a job on grounds of nationality, if lower wages are paid compared to national workers or access to social security is restricted, they will have to return to the State of origin and the right of free movement becomes illusory
We find that the persistence of the market elements pleads for allowing a free movement of persons, which does not substantially disturb the economy of the host Member State
Summary
Free movement of persons is a fundamental freedom of the EU. It lies at the foundation of the European Economic Community (EEC) and is an important condition for realising the internal market. It meant that entrepreneurs in the poorer countries have made use of the right of free movement, this time of services, by accepting work in the richer Member States They were and are often able to compete with lower wage rates for their workers. Both this social development (awarding the right to free movement to EU citizens) and market development (persons and enterprises seeking work in Western States) in a context of important differences between Member States have impacted negatively on the principle of equal treatment underpinning the free movement of persons and the social dimension of the market.
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