Little to remove the barriers to the free movement of labour and much more positive integration

Needs to take place. The problem is that the positive integration measures introduced (or proposed)

have led to a great deal of tension in the EU, with past UK governments “opting out” of

measures like the Social Charter. In the social aspects of integration, there is very much a “pick

and mix” Europe.

Why is integration of the European labour market important? The main reason is that integrating

Markets for goods and services makes little sense without labour market integration. The free

Movement of goods, services and enterprise will create problems in some member states as resources

Are re-allocated within Europe. Whilst there are benefits to economic integration, not all

Countries or regions will benefit equally and some will lose out (rural areas and those regions in

Which declining industries are located). Without labour market integration there is a danger that

Governments will engage in dangerous competition with each other, watering down labour protection

Laws for example. If employment conditions and social standards are not harmonised, labour

Will migrate to the country with the lowest rates of income tax or the highest social security provisions

— so-called social “dumping.” More “ laissezfaire” economists argue that such competition