Is desirable, since it will weaken the powers of governments to interfere with market forces and

create labour market flexibility in Europe.

Such flexibility and mobility, they argue, is vital if Europe is to make a success of the Euro.

The European Union has taken steps to try to encourage the mobility of labour by:

1) abolishing work permits;

2) improving job information in the EU;

3) allowing entitlement to social security benefits like unemployment benefits to be transferable

between member states;

4) allowing workers who cross national frontiers to choose to be taxed in their place of

residence to avoid differences in income tax rates acting as a barrier to the free movement of

labour;

5) drawing up directives which insisted that national professional and vocational qualifications

were acceptable in all EU states;

6) harmonising working conditions, such as paid holidays, maximum working week, minimum

paid maternity leave, extending employment rights to part-time workers; and

7) establishing minimum European health and safety standards.

Despite these measures the flow of labour between national labour markets remains low.

Commentary and Notes to Text 20.7.1.1

1. “opt out” of measures — устраняться от мер

2. water down — смягчать (сглаживать)

3. “laisserfaire” — (фр.) политика невмешательства (в экономику)

4. entitlement — право

20.7.1.2. Read the text “The Main Provisions of the Social Charter in the EC” and tell the group

which provision of the Social Charter in the EC seems most impressive to you. Substantiate your

answer.

The Main Provisions o f the Social Charter in the EC

1. Living and working conditions

“The development of a single European labour market must result in an improvement in the

living and working conditions of workers within the EC.”

This provision calls for, amongst other things, a maximum working week.

2. The right to freedom of movement

There must be no discrimination between workers on grounds of nationality.

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3. The right to social protection

“Subject to the arrangements proper to each member state, any citizen of the EC is entitled to

adequate social protection.”

A reference to social security or a minimum wage.

4. The right to freedom of association and collective bargaining

“Every employer and every worker has the right to belong freely to the professional and trade

union organization of their choice.”

5. The right to vocational training

This includes the provision of leave for training.

6. The right of men and women to equal treatment

7. The right to information, consultation and worker participation

8. The right to health and safety protection at work

9. The protection of children and adolescents

Establishes a minimum working age of 16 years and entitlement to training in work hours after

two years of work.

10. Disabled persons

Calls for measures to fully integrate disabled people in working life, including improving accessibility

to places of work.

Commentary and Notes to Text 20.7.1.2

1. bargaining — договор, ведение переговоров о заключении коллективного договора

2. adolescents — подростки

20.7.1.3. Read the text “The Benefits of a Single Currency in the EU” and make a short written

report about the advantages of introducing a single currency.

The Benefits o f a Single Currency in the EU

1. Reduced transaction costs

Trade between member states requires firms to change currencies: this inevitably incurs costs,

Let us take a highly simplistic example. If you were to set out from Manchester with ￡ 100 and make

a tour of all member countries of the EU, spending nothing in any of them because of free hospitality,

but changing the money at each point of arrival, you would emerge from the airport bank on

return to Manchester with approximately ￡26. The foreign exchange markets would have swallowed

the rest! On a more serious level, the European Commission has estimated that the savings

on transactions costs is 0.5 per cent of the EU’s GDP per annum. This results in a resource saving

which can be used to raise living standards and employment. Central banks would find that they no

longer needed to keep so much foreign exchange.