Download publication

Parliamentary Testimony

Could revising the posted workers directive improve social conditions?

This presentation was delivered in Brussels on 31 January 2017 at a hearing of think-tanks, to advise the European Parliament on the revision of the Posting of Workers Directive.

By: Date: August 29, 2017 Topic: European Macroeconomics & Governance

In this parliamentary testimony Zsolt Darvas discussed the importance of posted workers in driving down wages/social conditions in high-wage EU countries and made several conclusions on the state of the policy.

Firstly, economic integration, a founding principle of the EU, has benefits. But there are losers who should be helped.

Secondly, there will always be competition between low-wage and high-wage countries, both from inside and outside the EU. Posted workers play a minor role in this competition. The impacts of goods imports and offshoring production on jobs, wages and social standards in high-wage countries are much larger than the impact of posted workers. It is incorrect to refer to “social dumping” in relation to posted workers.

Thirdly, certain aspects of the Posting of Workers Directive could be addressed, but this is not the main priority. The European Commission’s proposal for the revision of the Directive clarifies five main issues, yet it would not change the legal framework fundamentally. The proposed changes might help to limit the abuses of the Directive.

Fourth, the number of undeclared workers in high-wage countries is more than 100-times the number of posted workers. Therefore, the fight against undeclared work should be the top priority.

For more information on this topic please see Zsolt Darvas and Elena Vaccarino’s blog: “Social dumping” and posted workers: a new clash within the EU

View comments
Read about event More on this topic

Upcoming Event

Dec
11
12:30

Emerging Trends in Competition Policy - A Global Perspective

How is global competition policy evolving given the challenges of the digital era?

Speakers: Cristina Caffarra, Antonio Capobianco, Kris Dekeyser, William Kovacic and Georgios Petropoulos Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read about event More on this topic

Past Event

Past Event

Civil society for the digital age

What is the place of civil society in the digital age as well as the role of technology in society?

Speakers: Eline Chivot, Orla Lynskey, Bertin Martens, Georgios Petropoulos, Thiébaut Weber and Glen Weyl Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: December 4, 2018
Read article More on this topic

Blog Post

Youth unemployment: Common problem, different solutions?

Youth unemployment is a major obstacle to the Middle East and North Africa (MENA) region’s human and economic development. In this blog post, Uri Dadush and Maria Demertzis go into the factors behind the its surge.

By: Uri Dadush and Maria Demertzis Topic: Global Economics & Governance Date: November 29, 2018
Read about event More on this topic

Upcoming Event

Jan
16
12:00

Market power and its implications to competition policy

  This event will be livestreamed. There is no need to register for the livestream. The event’s program is still under construction. 

Speakers: Adina Claici, Fiona Scott Morton, Nicolas Petit, Georgios Petropoulos and Arno Rasek Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels
Read article More on this topic

Blog Post

Preliminary observations on the European Commission’s Android decision

Following the announcement that Alphabet (Google) will appeal the European Commission's ruling on the competition case against its Android mobile operating system, the authors here assess Google's compliance while its appeal is pending as well as the likelihood of a net positive outcome for societal welfare.

By: Mathew Heim and J. Scott Marcus Topic: Innovation & Competition Policy Date: November 27, 2018
Read about event More on this topic

Past Event

Past Event

Competition policy for the digital age

How can competition policy adapt to market changes caused by new technologies, digital platforms and big data companies?

Speakers: Ana Botin, Riccardo Falconi, Jorge Padilla, Tommaso Valletti and Reinhilde Veugelers Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: November 21, 2018
Read article More on this topic More by this author

Podcast

Podcast

Director’s cut: What Syrian refugees need to return home

This episode of the Director’s Cut features a conversation between Bruegel’s director, Guntram Wolff and Maha Yahya, the director of the Carnegie Middle East Center

By: The Sound of Economics Topic: Global Economics & Governance Date: November 15, 2018
Read article More on this topic More by this author

Podcast

Podcast

Backstage: How think-tanks can make themselves heard in an information-rich world

Think-tanks have come a long way since their organisational blueprint was first conceived, but they have work to do in order to adapt to meet the needs of both policymakers and the general public, and transmit their signals above the noise of the modern age.

By: The Sound of Economics Topic: Global Economics & Governance Date: November 8, 2018
Read about event

Past Event

Past Event

Global Think Tank Summit 2018

The public session of the Global Think Tank Summit will discuss trade and fair global competition

Speakers: Edward Kofi Anan Brown, Aart de Geus, Zhao Hai, Jacob Funk Kirkegaard, Cecilia Malmström, Catherine McBride, James McGann, Jan Mischke, Izumi Ohno and Guntram B. Wolff Topic: Energy & Climate, Global Economics & Governance Location: Bozar, Rue Ravenstein 23, 1000 Bruxelles Date: November 7, 2018
Read article More on this topic

External Publication

Reconciling contradictory forces: financial inclusion of refugees and know-your-customer regulations

The authors contributed to the new issue of the 'Journal of Banking Regulation' with a paper on financial inclusion initiatives and banking regulations necessary to provide access to financial services for asylum seekers and refugees.

By: Zsolt Darvas, Uuriintuya Batsaikhan and Inês Goncalves Raposo Topic: Finance & Financial Regulation Date: October 30, 2018
Read about event More on this topic

Past Event

Past Event

Competition Policy and Extraterritoriality

An in-depth look at competition policy.

Speakers: Guntram B. Wolff and Jean Pisani-Ferry Topic: Innovation & Competition Policy Location: Bruegel, Rue de la Charité 33, 1210 Brussels Date: October 16, 2018
Read article More by this author

Podcast

Podcast

Director’s Cut: Europe’s migration policy challenge

Immigration is one of the most contentious policy matters currently facing the EU. In this Director’s Cut of ‘The Sound of Economics’ Bruegel director Guntram Wolff welcomes Ana Palacio, member of the Spanish council of state and former foreign affairs minister, as well as Bruegel visiting fellow Elina Ribakova for a constructive discussion as to which approaches will yield the best results.

By: The Sound of Economics Topic: European Macroeconomics & Governance, Global Economics & Governance Date: September 14, 2018
Load more posts