Macron hints at EU deal to clamp down on cheap workers

Macron hints at EU deal to clamp down on cheap workers



French President Emmanuel Macron today revealed he is 'convinced' the EU will strike a deal to clamp down on cheap workers moving to western Europe.

Mr Macron said he expected an agreement to be in place by the end of the year after he repeatedly warned unfettered free movement could threaten the EU.

The President, who swept to power in May, has stood apart from other EU leaders in warning of the political impact of low-paid eastern European taking jobs in larger, more developed nations.

His latest intervention came on a visit to Bucharest in Romania. 



 Mr Macron praised Romania's will to 'work together' with France on the issue after talks with Romania's president.

'Posted workers' from Eastern European nations including Romania and Poland continue to pay into the tax and social security systems of their home countries.

This allowing employers to hire them for less than in Western countries where welfare costs are higher.

The majority work in construction, but many also work as welders, electricians or carers for the elderly.



The French president wants to require companies to pay posted and local workers the same salaries and limit postings abroad to up to one year.

'It's not about banning Romanian road transport companies from working everywhere in Europe,' Macron said, referring to Romanian truck drivers often hired by Western European companies.

Mr Macron said new rules must be drawn up to better protect French workers from unfair competition.



Posted workers account for about 1 per cent of the EU's total workforce, but they are perceived as pricing out local workers in Western Europe, putting downward pressure on wages and exacerbating inequalities in wealth.

Last year, the European Commission proposed new rules to regulate pay for posted and local workers, but the proposals were opposed by member states in central and eastern Europe.

Romanian President Klaus Iohannis said that EU rules needed to be clearer.

He said: 'Nobody wants to create favourable conditions for some and unfavourable conditions for others.

Mr Iohannis noted close cultural and business ties between his country and France, saying bilateral trade was worth about 8 billion euros ($9.44 billion).

Romania's National Pension House says last year some 50,000 Romanian workers were posted abroad to other EU countries.

Mr Macron also spoke about the 26-country European free-passport zone known as the Schengen zone, which allows citizens to travel without border controls.

He said he was not opposed in principle to Romania joining the group, but said border control of the area must be improved first. 'The Schengen zone is not working well,' he said.

Macron will later travel to Bulgaria which also wants to join the Schengen group.