WRITTEN QUESTION E-1964/99

by Gerhard Hager (NI) to the Commission

(5 November 1999)

Subject: Impact of the Schengen visa on competition

In recent years, it has become increasingly common among Austrian haulage companies to employ citizens from central and eastern Europe holding a six-month Schengen visa but no work permit as drivers for journeys within Europe for financial reasons. As a result of this common practice, Union citizens have found it increasingly difficult to find employment in this sector.

In view of this, can the Commission answer the following questions:

1. Is the Commission aware of the above-mentioned practice?

2. Approximately how many people from central and eastern European countries are granted six-month Schengen visas both in Austria in particular and in the EU as a whole?

3. What measures does the Commission consider to be appropriate to curtail this practice which is detrimental both to the labour market and to competition in the Union?

4. Has the Commission investigated this matter?

5. Does the Commission consider that this practice is compatible with EU competition law?

6. If not, what measures does the Commission intend to take to curtail this practice?

7. If so, how does the Commission justify its position?

Answer given by Mrs de Palacio on behalf of the Commission

(16 December 1999)

1. The Commission is aware of the increasing number of drivers from outside the Community that are employed often illegally by haulage firms in the Community. The Commission is concerned about the distorting effects of this practice on road haulage competition within the Community and considers this issue to be a very pressing problem within the national and international road haulage industry.

As regards in particular the practice of Austrian hauliers to employ drivers from East European States as described by the Honourable Member, the Commission would like to point out that this is illegal according to the relevant Austrian rules.

2. The Commission is not in possession of the information requested.

Nevertheless, the Commission would underline that the Schengen acquis does not include provisions concerning rights of employment. A uniform Schengen visa is a travel visa valid for one or more entries, provided that neither the length of a continuous visit nor the total length of successive visits exceeds three months in any half-year, from the date of first entry (Article 11 of the Schengen Convention). The length of a visit covered by a uniform Schengen visa is not always up to three months per six month period: the length of visit fixed by Article 11(1)(a) constitutes a maximum limit.

Attention should also be drawn to the pending Commission proposal for a Council and Parliament directive on the conditions for posting of third country workers in the framework of provision of services(1). The proposal aims at introducing the EC service provision card to be granted by the authorities of the Member State where a service provider is established. The proposal does not apply to the transport sector, but underlines that only those third country workers can be posted in the framework of cross border provision of services if they are and have been lawfully employed for a certain time (at least 6 months) in the Member State where the employer is established. This element has been introduced to avoid direct recruitment of third country nationals in third country countries, a situation described in the written question.

3. and 4. In order to grasp the extent of the problem of the often illegal use of non-Community drivers, the Commission has asked the Member States to provide an overview of the diverse social, labour and transport rules applied by them in this area. Obviously this is only a first step in exploring possible ways to address this issue. Once the Commission has gained an overview of the relevant rules and details determining current practice, it will consider what action must be taken.

5. to 7. It cannot be excluded that the use of non-Community drivers on Community vehicles in intra-Community transport may have distorting effects on road haulage competition. The issue has to be analysed and solutions must be sought, as pointed out above, by preference within the framework of the diverse social, labour and transport rules applied in this area.

(1) OJ C 67, 10.3.1999.