Free Movement as a Threat for Universal Welfare States?

Abstract

The free movement of workers has been a cornerstone of the European Union since it was founded in 1957. A gradual improvement of rights to groups other than workers has implied that rights related to free movement have already had an impact on universal welfare states’ social security arrangements, especially in the area of pensions. Given the enlargement of the past 10 years and a strong increase in inter-EU migration this impact might even increase. This article, using Denmark as a case study, looks at how, over time, free movement may lead towards convergence and thereby Europeanization of welfare states in Europe. It focuses especially on the pressures brought to bear on the universality of the Danish welfare state, thereby moving it away from one of the distinctive characteristics of the Nordic welfare state model: the universal access to benefits. It also raises the question of whether or not recent developments are once again opening the debate on social dumping in Europe.

Commentary: A Citizenship without Social Rights? EU Freedom of Movement and Changing Access to Welfare Rights

“…They have made it easier for politicians to call for emergency brakes, as in Spain, or sanction talk of state‐imposed “quotas” after the Swiss referendum on EU migration and the Brexit vote. The trends have also normalized the kind of state‐controlled legal exceptions on free movement and migrant rights pioneered in Denmark (Adler‐Nissen, ; Greve, ). There have been moves to curb vagrant and economically inactive populations in Sweden and the Netherlands (Scholten and van Ostaijen, ).…”

Citizens' expectations about social protection in multilevel governance: The interplay between national and supranational institutions

“…In the context of the Eastern EU enlargements, these principles of non‐discrimination and exportability have fuelled concerns over so‐called welfare tourism from new to old member states (Andor, 2019). These concerns have led some of the old member states to reduce the universality of their social benefits and services (Greve, 2014; Kvist, 2004). Together, these arguments suggest that European integration constitutes a destructive force for social protection.…”

“…Their relatively generous protection systems are more prone to downward pressures on taxation in order to maintain their competitive position vis‐à‐vis other member states 1 . In addition, fears about welfare tourism find a stronger breeding ground in the most generous welfare states (Greve, 2014; Kvist, 2004). In these contexts, citizens will perceive the EU–welfare nexus in a more damaging light (Baute et al, 2018; Ray, 2004) and may therefore expect that more EU policymaking will undermine their generous social benefits and services in line with the race to the bottom thesis.…”

“…Most notably, the European Structural and Investment Funds (ESIF) consist of multi-annual programs to support strategic long-term goals. These ESIF, which were allocated over 500 billion euros for the period 2014-2020(European Commission, 2021, aim to reduce regional disparities in income, employment, investment and growth (Allen, 2010;Leibfried & Pierson, 1995). Second, the EU supports the development of national welfare states through imposing social regulations in areas such as health and safety in the workplace, working conditions and gender equality and non-discrimination, which have directly resulted in a levelling up in member states (Falkner, 2010).…”