The paper examines the impact of EU enlargement on migration, the effects of the transition period on the free movement in the enlarged Union and the abolition of border checks between the new and u0091oldu0092 member states. It argues that the present enlargement will remain unfinished for an unspecified period of time because of the delayed expansion of the Schengen area and the 2+3+2 year transition period for the freedom of movement of workers from the new member states. The paper argues that the application of these restrictions makes little economic sense. Given the declining birth rates in Western Europe, the inflow of immigrants is necessary in order to ensure the continuous economic growth and swift functioning of the pension and social security schemes. The paper calls for bringing down the transitional measures restricting access to European labour markets before the end of the initial period of two years (i.e. 2006) with only a possible exception applicable to regions located at borders between the new and u0091oldu0092 member states. It also argues that no further delay in the extension of the Schengen zone to 10 new countries should be acceptable beyond the end of 2007.