Easing legal and administrative obstacles in EU border regions : Case Study No. 2: Labour mobility : obstacles for cross-border commuters (Denmark - Sweden)

Freedom of movement is enshrined in EU law. For economies to be efficient, and create jobs and opportunities, it is especially important in cross-border regions to address obstacles that impact negatively on the ability of citizens from one country to work in a neighbouring country. Failure to do so can result in unfilled vacancies, skills gaps and economic linkages between businesses and between businesses and their employees being impaired, impacting on the prospects for economic health and growth. Commuting between countries is actually more limited than it might be expected and especially in the EU15 group of Member States. There are multiple, complex reasons that are interrelated and that provide obstacles to those wishing to commute from one region to another in an adjacent country. These include differences in tax and pension regimes, restrictions on non-EU nationals working in cross-border regions, and restrictions on unemployed workers taking jobs in adjacent regions/countries. The importance of specific obstacles varies between cross-border regions but it is the combination of obstacles that has proven to be a brake on commuting. The illustrative case in this study is the Öresund region in Sweden and Denmark. There have been close economic links for many years but it took the construction of the Öresund Bridge to prompt an increase in commuter flows. The flows are dominated by commuting from Sweden to Denmark in view of finding higher paid jobs and addressing skill gaps and unfilled vacancies in Denmark's business community. However, local research has shown the economic potential of increased cross-border commuting and has suggested that commuter flows could be increased to the advantage of the region, its business and employment base. Öresund has an evolved governance structure that has made those obstacles that hinder economic integration a priority, and has planned actions to address them. In respect of commuter flows some obstacles have been tackled but a set of interlinked obstacles are part of the current programme to address all legal and administrative obstacles. These include: taxation of pensions, unemployment benefit affiliation and restrictions on work placements across the border. The means of handling these obstacles include improved information services, bilateral agreements and court cases (at Member State rather than EU level). The case study highlights the following general lessons and good practice examples: The role of bespoke cross-border organisations (such as the Freedom of Movement Council, and the Öresund Committee) is generally not to solve the cross-border obstacles. Rather, it is about identifying the obstacles and facilitating the process to resolve them. Many cross-border obstacles can only be solved through the involvement and engagement of politicians. An important challenge for many border regions, including the Öresund region, is therefore to provide politicians with the evidence and information that they require to take necessary actions, as well as securing their engagement ; Targeted and continuous information services can also help improve the knowledge of cross-border commuters.