Polish Plumbers and French Fears

The EU added 10 new countries to its family last May. These States were former members of the communist bloc, and in joining Europe, they have transformed their economies and societies.
New member countries can expect substantial grants to help improve their infrastructure, (bridges, roads , agriculture etc) . Problems surround this windfall however, not least of which is the CAP, which I talked about the other day. Faced with the massive amounts being discussed, the original (and rich) countries, are getting squeamish regarding the increased contributions to the central EU budget needed to make good on these promises. Given the downturn in the ecomomies in France and Germany, and the inability of the UK to get changes in the division of the current pool of money, the subsidies the new members were expecting, are consequently smaller than they had hoped and expected.

Integration has a host of potential problems. The countries in Western Europe have very extensive social welfare programs, as well as high minimum wages. In contrast, the new states have low wages and a minimal social safety net. There is a marked disparity between the life of the average German and his counterpart in the East. Fears of "social security" migration, into countries with a solid safety net, have prompted many states to delay the extension of rights and priviledges enjoyed by citizens of the original members. I'll discuss the thorny issue of freedom of movement and migration more below.
The new members have stepped up reform of their internal sytems since joining. Poland is talking about a flat tax rate (corporate, personal and VAT) of 18%. Estonia, Latvia and Slovakia all have flat tax rates with minor variations.
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2005/03/16/cnpol16.xml&menuId=242&sSheet=/money/2005/03/16/ixcity.html
This makes these countries much cheaper places to do business, and manufacturing is moving east in response. Slovakia is now the center of car manufacturing in Europe, and within two years is expected to produce more cars per head than any other country in the world.
http://news.bbc.co.uk/2/hi/europe/4506109.stm
All of this is good news for economies which are in dire need of investment. The standard of living is rising and on the visits I have made to the region, I've noticed a real change in attitude on the part of everyday people. There is an air of optimism. Corruption and poverty still exist, and a dispossed class is emerging, but it's a better place than it was 5 years ago and in contrast to Western Europe, the economies are growing and unemployment is falling.

One of the oft repeated fears of Eurosceptics is the approaching tide of cheap East European labour about to swamp Paris, London and Berlin. This has not happened seven months on, and though migration is occuring, it has tended to have a positive impact on the economies of the recipients.
http://www.workpermit.com/news/2004_03_09/eu/migration_fears_unfounded.htm
http://news.bbc.co.uk/1/hi/uk_politics/3813695.stm

The French, once again have led the way in xenphobia. The "Polish Plumber" has been the symbol, from extremes on both the left and right, of the alarm felt at the prospect of tradesmen from the east decending on a naive, generous, French nation. Noble French artisans will be thrown out of work and the very fabric of French culture threated .
The Poles , with characteristic humour , have responded by designing an international tourist campaign around the French fears:

The poster says, in a "come hither" manner, "I'm staying in Poland come over"

Similarly, ads promoting health spas use a rather fetching nurse......To be fair, it seems the French have got the joke.

http://news.bbc.co.uk/2/hi/europe/4115164.stm

Well thats about it. There is a blog on this service which seems to discuss all things "Immigration and EU" and is worth a look if you're interested:

http://europhobia.blogspot.com/2005/02/eu-and-immigration.html

I hope this post finds you all happy and Healthy. I'll be travelling over the holidays, but will post as and when I get a chance...

Terry