The European Court of Justice, in its infinite lack of wisdom and foresight, has ruled that an unemployed Romanian citizen in Germany had no automatic right to unemployment benefits. The subject of benefits to migrants is very contentious across the EU. People often feel that benefits should be given to those who have contributed to the country.
This is a serious obstacle to freedom of movement. People’s contributions to any country within the EU should be taken into account. The only solution, I feel, is to establish an EU-wide/federal system of basic unemployment benefits that is linked to each person’s contribution to tax in whatever country. This will also allow people to move their ‘credits’ for pensions more freely across the EU. Above all, it would take away the responsibility from single member states.
Here are some proposals from researchers and academics for a European unemployment insurance scheme.
They include: László Andor on strengthening the EMU’s resilience and Europe’s recovery; Sebastian Dullien on the macroeconomic stabilisation impact of the scheme; H. Xavier Jara and Holly Sutherland on effects on income in unemployment; and Daniel Gros on ‘insurance with deductible’.