1. I had the pleasure of speaking at the introductory conference for the 2006 Year of Mobility, not least because I had been Parliament's Rapporteur on the modernisation of the 1408/71 Regulation on the Coordination of Social Security Systems - since then I have become our Rapporteur on the Implementing Regulation.

2. This coordination is one of the building blocks of labour market mobility within the EU and I shall say something later about how it has been operating within the context of the UK - new 8 (if I can use that expression) a little later.

3. I think it is extremely important that we review what is happening on the right to free movement within the EU, not least as we approach further EU expansion: we need to make sure that we learn from our most recent experience and that we try to resolve some of the problems for our citizens and our residents.

Transitional periods

4. Of course, the effect of transitional periods has been considerably distorted as so few countries really offered any easy opportunity to work. The figures can also be contested as many workers are semi-compliant with national requirements and it is difficult to track those leaving.

5. We do know that in the UK, Ireland and Sweden, we have not seen significant labour market disruption. In the UK, we have seen about half a million Nationals from the new Member States take up employment in a variety of sectors across the whole country, not just in London - my own region, where we have seen literally hundreds of people arriving from Poland at Victoria coach station on a daily basis. Ireland, too, has seen a large number of people coming to work, an increase from 11,000 PPS (Personal Public Service) numbers issued in 2001 to 10 times that (110,000) in2005. Sweden has seen a comparatively small number (higher in Norway - more demand for low-skilled, short-term employees and greater network effects) - which is not so surprising as one of the key reasons given for seeking work in the UK and Ireland was to improve the individual's knowledge of the English language. It also has to be said, that some employers made a very deliberate effort to recruit in the new Member States, whether for bus-drivers from the Baltic or dentists from Poland.

6. The distribution across skill-levels is also different in the 3 "open" countries: in Sweden, EU8 nationals have a distribution similar to Swedish nationals (with a slight concentration in the health sector). In Ireland, they are in both low-skilled (tourism, agriculture, food processing and construction) and high-skilled (financial services, IT, healthcare): whereas in the UK, the vast majority are in low-skilled work, although this may be starting to shift.

7. The role of the diaspora has also been important in drawing people in: the role of migrant networks is well documented. We have the reality, or the myth, of the streets apparently paved with gold: a story which can make it very hard to return home if that is not the reality.

8. However, we have also seen considerable numbers arriving in Member States where the doors were not opened so widely. Germany would have had food rotting in the fields without thousands (over 320,000, according to the World Bank) of seasonal migrant workers from Poland, for example.

9. Self-employment has also given a way in for many - how accurate the description is, could be another issue!

The effects
10. One key effect, noted in Parliament's report from Mr. Csaba Ory, was the development of a feeling of second-class citizenship for the new EU members. We now have (in most EU states) the Directive on the rights of third-country nationals who are long-term residents. This is an important and welcome Directive, in line with the Tampere conclusions of 1999. What some have perceived is that, despite the Treaties and fine words of welcome, Third-Country Nationals have greater rights than EU nationals.

11. Interestingly, the UK now plans to draw its need for unskilled labour from new Member States rather than third countries - and it may not be alone. I am not sure that this will be seen as equality of treatment! It is also not clear where it fits with an EU legal migration policy.

12. We know that many of those who have moved from the EU8 (especially in the UK) are already working in jobs well below their level of qualification and for the minimum wage: we should consider what this might mean in terms of losing skills rather than developing them and what this implies both for countries of origin on their return and for the EU goal of a knowledge-based economy. There may also be issues here about difficulties in recognising qualifications, especially where these are for skilled craftsmen or other vocational strands.

13. We also know that there has been concern voiced in the sending countries about the outflow of the working age population - especially in the Baltic and to, some extent, Poland. In some sectors, (which often match those where EU8 nationals are now employed in EU3 countries) they are now considering the import of labour and wages are increasing. Remittances have increased but are not particularly focused, although there are some signs that it is being used to invest in tertiary education.

14. It is also likely, according to Bank of England data, that wage levels have been restrained, albeit slightly, in low-wage sectors due to the influx of workers. Others argue that the effect of the EU is marginal and that the pressures of globalisation have had a greater effect. This has been seen as positive for inflation levels, but we should look at what this might mean for poverty reduction and social inclusion - which are also EU goals.

15. Concerns about displacement, or deliberate replacement, of existing workers seem not to have been realised to any great extent. This may be due to inadequate monitoring so we simply don't know the true extent, or the effect of some early high-profile cases which provided the proverbial warning shots. A high demand for labour has also meant that the labour market has largely absorbed new workers. It is really important that people are aware that new workers are not competing for jobs but are complementary to the existing workforce. Failure to be clear on this risks inaccurate perceptions and potential social tensions.

16. However, the positive contribution made to the economies of countries which opened the labour markets is undeniable. Public services, such as healthcare and transport and private companies have benefited. Social security systems are not under pressure - well, not from migrants. They are attracted by labour market opportunities and not by social welfare systems

Implications for citizenship

17. There are also further implications for citizenship when individuals pursue mobility within the EU, as responses to the Commission's website show. Many nationals lose their right to vote in national elections when they move - the time period varies from country to country and, while they have the right to stand and to vote in local and European elections in their country of residence, they do not necessarily acquire similar rights in national elections.

18. Similarly, issue may arise about the citizenship of their children. Some Member States have been tightening up on citizenship rules in response to the debates on integration of migrants and immigration generally. If you are the child of mobile parents, how do you demonstrate a closeness to their country of birth if you have hardly lived there? Member States need to take care that there are not unintended effects of citizenship or residency legislation for EU national exercising their right to free movement.

Accessing social security
19. In September this year, we saw not only the publication of the latest excellent ECAS report on free movement and enlargement, but also a report from Homeless Link in the UK. This is an umbrella organisation bringing together organisations dealing with the homeless and those at risk. They were beginning to see a small but significant number of people from the EU8 making use of some of the advice and support services they offer. This is creating problems as, due to the restrictions put on access to certain benefits and the worker registration scheme, no funding follows these people - they are doubly excluded - and are also putting some strain on services to the vulnerable and homeless.

20. I went out on a soup-run in London last week to see for myself. I met men from Poland and the Czech Republic some sleeping rough, some in squats - all wanting to work. What they need is appropriate support. Homeless organisations estimate that they have between two to four weeks before they begin to get in to real problems - often with drink, drugs or prostitution. Some really need such support now. With early intervention, people can be helped in to work, or to return home.

21. Most of those I met were ill-prepared: but this does not necessarily mean they are feckless Poles (as the Polish President reportedly described them on his recent visit to London )some had heard the diaspora stories of success and had no idea about the cost of living in the UK for example. The "street" advice is you need to come with about £500 to survive your first few days and weeks. Worker Registration is meant to be compulsory and employers should insist on it but, at £70, that represents about 14 hours work on minimum wage before tax and national insurance (80% of EU8 are earning minimum wage or less!). Many employers do not insist: we have found contradictory advice on the need to have a NI number before starting work - the DWP has said "no", reputable agencies have said "yes". Not registering has implications for entitlement to certain welfare benefits after a year of continuing employment.

22. Those who have applied for their national unemployment pay to be transferred have faced ignorance from officials, obstruction and enormous delays. Under EU anti - money laundering rules, obtaining a new bank account is very difficult with no proof of address; some landlords insist on direct debit payment of rent, so accommodation is difficult. We have seen unscrupulous behaviour by employers trading on ignorance to deduct more than they should or not transfer tax and national insurance which will have implications for social security entitlements when people return home or move on.

23. We have seen agencies in countries of origin and destination prey on naïve or hopeful young people - promising help with accommodation and work - who then take the money and deliver nothing. Regulation of agencies and prosecution of this organised exploitation is another area we should address.

24. Ignorance of labour law has meant some are being horribly exploited - the reports from Puglia may seem extreme but there are also some horror stories of exploitation, often linked to rural areas, tied accommodation and lack of facility in the language of the country of destination which means people cannot obtain help, even if that help is available.

25. So, for free movement to be effective it requires:
- good presentation and preparation by the relevant authorities and agencies in both sending countries and countries of destination
- clear information about what to expect, including the importance of any registration process
- an awareness of labour rights and rights to social security
- an organised "welcome" programme at points of arrival
- trained staff , both for the sending countries and countries of destination - all embassies and consuls need to be aware and resourced for this (for example, having a Polish speaking person seconded to the central London employment office has proved useful but the secondment is now ending)
- local government also needs access to accurate information and support
- trade union support is crucial (I have seen excellent examples in Ireland, for example)
- a clear commitment to deal with some of the issues that fall though the gaps in co-ordination of social security (such as entitlement to unemployment benefit)
- the need to deal with tax questions (as Parliament wanted when we dealt with the simplification of 1408/71).

Many of these issues can be dealt with through forethought and adequate resourcing.

23. Much migration is fairly short-term precisely because there seems to be a period of about two years when you can get by without really having to invest in understanding the full complexities of your new location. However, if people are going to accumulate successive periods of relocation, they need to be aware of the potential long-term effects, not least on pension entitlement.

26. I also believe, we need to look at free movement within the context of an overall immigration policy and a full approach to citizenship.

27. Migration is about personal development, not just national economic development. We shall have more people moving for work purposes, study, family reasons and retirement. Rigid systems and definitions constrained by national boundaries will not be appropriate for this growing group of people, who represent all skill levels and social classes. How can we develop a sense of European citizenship so that the enthusiasm and desire to experience the different cultures and opportunities that the EU has to offer is not lost due to poor administration and a failure to help people understand and access their rights?

That is the next challenge for free movement. Can we meet it?