(2000/C 27 E/204) WRITTEN QUESTION P-1707/99
by Jan Andersson (PSE) to the Commission
(20 September 1999)
Subject: Commissions plans regarding freedom of movement for workers in border regions
The expectations raised in regard to freedom of movement since the introduction of the internal market
have not been fulfilled. In border regions, particularly, differences in tax and social security rules betweenthe Member States seem to be hampering genuine freedom of movement for workers. With thecompletion of the permanent link across Øresund, freedom of movement has now become an issue in
my own home region.
Will the Commission say what measures it intends to take to promote freedom of movement in border
regions and, in this context, will it state its position on the promotion of bilateral agreements betweenindividual Member States on matters such as tax and social security?
Answer given by Mrs Diamantopoulou on behalf of the Commission
(21 October 1999)
The Commission made a proposal on 22 July 1997 on amendments to the existing Community law on
freedom of movement of workers (
1). One of the aims of the proposal is to reinforce the application of
equal treatment for Community workers by taking account of the particular situation of frontier workers.
The proposal includes a new provision in Regulation (EEC) 1612/68 of the Council of 15 October 1968,
on freedom of movement for workers within the Community (2) with reference to the situation of frontier
workers. This provision would constitute a basis for reinforcing the frontier workers legal security. It isimportant to determine the benefits to which a frontier worker is entitled under the legislation of theMember State of employment, which is generally designed for workers who are resident. As a rule, it is
considered that a frontier worker should enjoy the same benefits as a resident worker.
The Parliament approved the proposals in first reading with a series of amendments (5 May 1999). The
Economic and social committee delivered a favourable opinion (plenary session of 27 April 1999). Theproposal is not yet on the agenda of the Council.
In its proposal to review and simplify the rules on co-ordination of social security schemes (
3), at present
contained in Regulation (EEC) 1408/71 of the Council of 14 June 1971 on the application of socialsecurity schemes to employed persons and their families moving within the Community (
4), the Com-
mission has paid special attention to the situation of frontier workers. The improvements suggested are inline with those sought by the Parliament in the past and include, for example, facilitating access for retiredfrontier workers and their family members to health care. This proposal is at present on the agendas of theCouncil and the Parliament.
In the absence of harmonisation at Community level, the apportionment of the taxation rights in bilateral
relations is, as recently confirmed by the Court of justice (
5), the competence of Member States. Although
conventions for the avoidance of double taxation do not exist between all Member States, all those with acommon border have concluded conventions. Relations between Denmark and Sweden are governed by
the Convention of 23 September 1996 concluded between the Nordic countries, as modified by a protocol
of 6 October 1997. Consequently, there should not be any double taxation of cross-border workers andthe Commission does not see the necessity for Community action in this area.
(1) OJ C 344, 12.11.1998.
(2) OJ L 257, 19.10.1968.
(3) COM(98) 779 final.
(4) OJ L 149, 5.7.1971.
(5) Judgement of 12 May 1998, Case C-336/96 Mr and Mrs Gilly, point No 30.C 27 E/166 EN 29.1.2000 Official Journal of the European Communities