Communication from the Commission to the Council, the European Parliament, the European Economic and Social committee and the Committee of the Regions - First Annual Report on Migration and Integration
Date: 2004-07-16
Institutions: European Commission
Subjects: EU migration policy, activity report, integration of migrants, migration

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 16.7.2004 
COM(2004) 508 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

First Annual Report on Migration and Integration 

EN 

   EN 

 
 
 
 
  
TABLE OF CONTENTS 

1. 

2. 

3. 

4. 

5. 

6. 

7. 

INTRODUCTION........................................................................................................ 3 

MIGRATION TRENDS IN EU-25 ............................................................................. 3 

THE SITUATION OF IMMIGRANTS IN THE LABOUR MARKET AND THE 
ECONOMIC BENEFIT OF IMMIGRATION ............................................................ 3 

DEVELOPMENTS IN ADMISSIONS POLICIES..................................................... 4 

TRENDS IN NATIONAL POLICIES ON INTEGRATION...................................... 5 

PROGRESS IN THE DEVELOPMENT OF THE COMMON IMMIGRATION 
POLICY ....................................................................................................................... 6 

CONCLUSIONS.......................................................................................................... 9 

Annex to the First Annual Report on Migration and Integration

Annex:  

EN 

2 

   EN 

 
1. 

INTRODUCTION 

In  its  Communication  on  immigration,  integration  and  employment1,  the  European 
Commission  announced  that  it  would  "report  annually  on  progress  made  with  the 
development  of  the  common  immigration  policy".  In  June  2003  the  Thessaloniki  European 
Council invited the Commission "to present an Annual Report on Migration and Integration 
in Europe, in order to map EU-wide migration data, immigration and integration policies and 
practices. This Report, which should contain an accurate and objective analysis of the above 
issues,  will  help  develop  and  promote  policy  initiatives  for  more  effective  management  of 
migration in Europe". This Communication initiates the reporting process.  

The  first  annual  report  gives  an  overview  of  migration  trends  in  Europe,  analyses  and 
discusses the changes in immigration and describes actions taken regarding the admission and 
integration  of  immigrants  at  national  and  European  level.  The  report  constitutes  a  new 
instrument to review the development of the common immigration policy.  

2. 

MIGRATION TRENDS IN EU-25 

International migration plays an important role in population growth. Recorded immigration 
rose  annually  in  most  of  the  EU-15  Member  States  between  1999  and  2001  and  remained 
stable or fell in most of the new Member States. Without positive net migration the population 
would have declined in some countries. 

During  1990-2002  some  of  the  new  Member  States  experienced  a  significant  change  in 
migration trends: from emigration countries to receiving countries, experiencing considerable 
outflows  and  inflows  of  economic  migrants.  Net  migration  is  still  relatively  low  but 
progressively positive in the majority of the new Member States.  

A more detailed review of migration trends is provided in section 1 of the Annex.  

3. 

THE SITUATION OF IMMIGRANTS IN THE LABOUR MARKET AND THE 
ECONOMIC BENEFIT OF IMMIGRATION 

The situation of migrants in the labour market 

The  share  of  third  country  nationals  in  total  employment  was  3.6%  in  EU-15  in  2002,  and 
between  1997  and  2002  they  contributed  22%  at  employment  growth.  As  for  EU  nationals, 
medium and high-skilled immigrants experienced the strongest increases in employment rates 
over  the  same  period.  Given  the  very  high  levels  of  employment  already  reached  by  EU-
nationals, third countries' labour is increasingly appearing as a major potential, which can be 
tapped  to  respond  to  both  the  continuing  demand  for  low  skilled  as  well  as  the  growing 
demand for skilled labour.  

1 

COM(2003)336 final 

EN 

3 

   EN 

 
 
                                                 
Still there are signs of an unused employment potential among third country nationals2. Third 
country  nationals,  including  high  skilled,  also  have  much  lower  employment  rates  than  EU 
nationals  and  the  gap  is  wider  for  women  than  for  men.  Over  the  last  decade  their 
unemployment has remained more than twice as high than EU-nationals', in a majority of the 
Member States.  

Available  information  regarding  the  new  Member  States  relates  to  the  situation  before 
accession. It confirms that, as in old EU countries, migrant labour – in this case mainly from 
neighbouring countries, including the former USSR and the Balkans - plays a part in adjusting 
for labour and skill shortages. A more comprehensive picture of the situation of migrants in 
the labour market is provided in section 2 in the Annex. 

Economic and public finance aspects of immigration3 

Economic theory is relatively optimistic with respect to the impact of immigration, suggesting 
overall  welfare  gains.  A  large  part  of  these  accrue  to  the  immigrants  themselves,  but  most 
studies  find  a  small  “immigration  surplus”  for  the  native  population.  The  impact  of 
immigration  on  public  finances  has  been  widely  debated.  Immigrants  are  often  seen  as  a 
burden  for  the  welfare  state,  causing  additional  costs  usually  not  matched  by  their  tax 
payments. Part of the increase in welfare dependency is due to the higher number of asylum 
seekers, who are not, or only under restrictive conditions, permitted to work. 

Unfortunately,  it  is  quite  hard  to  derive  a  reliable  estimate  of  the  net  fiscal  contribution  of 
immigrants. Their age composition tends to be beneficial to public finances. Immigrants are 
on  average  relatively  young  people  of  working  age  with  a  larger  than  average  potential  for 
having  their  tax  payments  exceed  individual  public  transfers  and  services.  However,  the 
relatively low employment rate of migrants may partly or entirely counteract the fiscal impact 
of a beneficial age composition. A positive net fiscal impact of immigration is likely in those 
Member  States  where  the  employment  rate  of  migrants  exceeds  that  of  the  resident 
population. Thus better integration of immigrants would improve public finances. Overall, it 
is probably fair to say that the net budgetary impact appears to be fairly small. 

4. 

DEVELOPMENTS IN ADMISSIONS POLICIES 

The Commission’s recent Study on the links between legal and illegal migration4 shows that, 
all  Member  States  have  channels  for  the  admission  of  labour  migrants,  notably  for  third-
country  nationals  with  specific  skills  or  workers  for  designated  sectors.  It  is,  however,  not 
only high skilled labour that is in demand as some, in particular Southern European countries 
or  recent  immigration  countries,  have  a  need  for  low-skilled  workers.  Admission  of  such 
workers  is  often  regulated  through  bilateral  agreements  with  neighbouring  or  selected  third 
countries, the underlying motive being not only to meet the needs of the labour market, but 
also  relationships  with  third  countries,  historical  links  and  cultural  exchanges,  as  well  as  to 
combat  illegal  migration.  The  majority  of  admissions  are  still  of  those  seeking  family 
reunification  and  those  who  have  been  recognized  as  requiring  some  form  of  humanitarian 
protection.  

2 
3 

4 

See ”Employment in Europe 2003” and section 2 in the Annex for detailed information 
This section is based on the note “Economic aspects of immigration” ECFIN/361/03, Economic Policy 
Committee 
COM(2004)412 

EN 

4 

   EN 

 
                                                 
Proposals for re-orientating migration policies towards a more selective employment-related 
approach  have  recently  gained  renewed  prominence.  Certainly,  a  flexible  admission  system 
for  attracting  specific  foreign  labour  can  significantly  contribute  to  ease  labour  market 
bottlenecks.  Moving  to  more  selective  immigration  policies  will  be  facilitated  if  Member 
States and the Community identify better future skills needs and occupational profiles as well 
as potential labour shortages5. However, accurate forecasts are likely to remain illusory, hence 
the  limited  scope  for  immigration  policies  pin-pointing  skill  shortages.  In  a  context  of 
accelerating economic restructuring and globalisation, the migrants most likely to help match 
demand  and  supply  are  those  whose  broad  qualifications,  experience  and  personal  abilities 
ensure their adaptability to a more complex and changing working life. Immigration policies 
should,  therefore,  aim  to  keep  the  admission  of  foreign  workers  on  an  even  keel  in  the 
medium-term and to avoid stop-and-go policies. 

5. 

TRENDS IN NATIONAL POLICIES ON INTEGRATION  

The  development  of  comprehensive  integration  policies  as  called  for  by  the  Commission6 
requires effectively mainstreaming immigration concerns in all relevant policy fields as well 
as actions to combat discrimination while at the same time developing specific measures and 
instruments to tackle the needs of immigrants.  

The information in this chapter is based on reports prepared by the National Contact Points on 
Integration7 as well as on the National Action Plans for Employment8 and the National Action 
Plans  for  Social  Inclusion9.  An  overview  of  national  policies  on  integration  is  provided  in 
section 3 in the Annex.  

Lack of access to employment has been identified as the greatest barrier to integration and 
thus  the  most  important  political  priority  within  national  integration  policies.  Lack  of 
language skills and difficulties regarding recognition of professional skills and qualifications 
are also important  barriers  and a  growing number of Member States are  taking  measures to 
improve  this.  Special  efforts  are  being  carried  out  to  improve  job  guidance  and  job 
counselling  for  migrants.  The  potential  of  migrants  to  become  entrepreneurs  is  also 
increasingly  recognised.  The  involvement  and  the  commitment  of  the  social  partners  are 
increasing but still limited. The evaluation of the effectiveness of policies is scarce. Finally, 
many occupations remain inaccessible for non-EU nationals on grounds of nationality.  

Language  skills  and  the  improvement  of  educational  attainment  are  identified  as  other 
key challenges. Member States seem to be focussing more on immigrants’ language abilities 
and  an  increasing  number  of  countries  are  providing  specific  language  tuition  for  newly 
arrived immigrants and refugees.  

5 

6 
7 
8 

9 

See also Employment Task Force "Jobs, jobs, jobs – Creating more employment in Europe", November 
2003 
COM(2003)336 final 
See MIGRAPOL-integration 21 final  
Joint Employment Report 
http://europa.eu.int/comm/employment_social/employment_strategy/index_en.htm 
Joint Inclusion Report 
http://europa.eu.int/comm/employment_social/news/2001/jun/napsincl2001_en.html 

EN 

5 

   EN 

 
                                                 
Increasing  emphasis  in  Member  States  has  been  put  on  civic  education  or  orientation  for 
new  immigrants,  such  as  information  about  fundamental  rights  and  obligations,  including 
equality of men and women, basic norms and values of the host society.  

Participation  in  the  political  decision-making  process  is  an  important  formal  step  to 
granting foreigners similar rights and obligations as EU-nationals and the majority of the 25 
Member  States  have  now  granted  some  level  of  electoral  rights  to  immigrants  at  the  local 
level.  

While  Member  States  identify  immigrants  among  those  particularly  at  risk  of  poverty  and 
social exclusion, many countries still fail to provide in-depth analysis of the factors leading to 
this situation. 

A number of Member States are still struggling to provide affordable housing and to address 
the negative consequences of segregation and deprived urban areas, where immigrants tend to 
be over-represented.  

The fight against discrimination and racism has been rendered even more complex in the 
recent political climate, with the sometimes negative stereotyping of immigrants in the media 
and  the  rise  in  support  for  far-right  political  parties  in  some  Member  States.  Policies  to 
combat  discrimination  and  racism  are  not  always  connected  to  the  integration  strategies 
pursued by the Member States. There is, however, a clear recognition of the need to act.  

Overall, it is difficult to assess whether there has been progress in developing comprehensive 
integration  strategies  at  national  level.  However,  a  number  of  Member  States  are  in  the 
process  of  developing  specific  integration  courses  or  programmes  targeted  at  immigrants 
and  refugees  and  there  is  a  growing  understanding  of  the  need  to  mainstream  immigration 
aspects  into  all  policies  and  to  mobilise  stakeholders  through  greater  co-operation  among 
national,  regional  and  local  authorities,  as  well  as  with  civil  society.  A  systematic 
mainstreaming of gender considerations seems to be lacking in most Member States when 
dealing with immigration, both in terms of policy and data. 

6. 

PROGRESS IN THE DEVELOPMENT OF THE COMMON IMMIGRATION 
POLICY 

6.1. 

Consolidating the EU legal framework 

Since 1999, the Commission has put forward several directives with a view to establishing a 
level-playing field between Member States and progressing towards a common immigration 
policy. The Directive on family reunification10, the Directive on long-term residents11 and the 
Directive on residence permits for victims of trafficking and smuggling12 have already been 
adopted. Political agreement was reached on 30 March 2004 with respect to the Directive on 
the admission of students. Other proposals in the pipeline are the Directive on the admission 
of  third  country  nationals  to  carry  out  scientific  research  and  two  proposals  for  Council 
Recommendations  to  facilitate  the  admission  of  researchers13.  Progress  has  also  been 

10 
11 
12 
13 

Council Directive 2003/86/EC of 22/9/03 
Council Directive 2003/109/EC of 25/11/03 
See COM(2002)71 of 30/04/04  
COM(2004)178 of 16/03/04 

EN 

6 

   EN 

 
                                                 
achieved in the field of social security when moving in the EU: a new Regulation14 entered 
into force in June 2003.  

The  Council  failed  to  reach  an  agreement  on  a  Directive  on  the  admission  of  third  country 
nationals  for  employment  purposes,  which  was  put  forward  in  2002.  Taking  stock  of  the 
deadlock,  the  Commission  is  planning  to  launch  a  comprehensive  consultation  process  on 
economic migration in the second half of 2004.  

As regards the directives to combat discrimination adopted in 2000 there have been delays in 
transposing this legislation in many Member States. The Commission is reviewing the state of 
progress and will act accordingly.  

6.2. 

EU policy co-ordination and exchange of experience 

6.2.1.  The National Contact Points on Integration  

In  June  2003  the  Thessaloniki  European  Council  stressed  the  importance  of  developing  co-
operation  and  exchange  of  information  within  the  framework  of  the  network  of  national 
contact  points  on  integration  with  a  view  in  particular  to  strengthening  co-ordination  of 
relevant policies at national and European level.  

With a view to structuring the exchange of information the National Contact Points decided to 
develop  a  handbook  on  integration  for  practitioners  and  policy  makers.  The  handbook  is 
currently  under  preparation  on  the  basis  of  a  series  of  technical  seminars  organised  by 
Member  States  where  they  exchange  best  practices  and  information  with  academia  and 
representatives of civil society. The handbook will provide some general principles and policy 
recommendations for integration policy illustrated with some good examples. The first edition 
is expected to be launched in the autumn 2004.  

6.2.2.  The European Employment Strategy and the Strategy for Social Inclusion 

Within the European Employment Strategy progress can also be seen. Revised Employment 
Guidelines were adopted in July 2003 calling for action to better integrate immigrants in the 
labour market and include a target on reducing the unemployment gap between nationals and 
non-EU nationals; they recognise the role of immigration in filling current and future labour 
shortages; and they insist on action to transform undeclared work into regular employment. A 
European Job Mobility Portal15 has been launched to provide information on available jobs as 
well  as  on  living  and  working  conditions  in  the  EU.  The  Commission  intends  to  strengthen 
mutual  learning  between  Member  States,  including  on  aspects  related  to  immigration,  by 
building on the existing system of peer reviews. 

Within  the  Social  Inclusion  Strategy,  it  was  stressed  in  the  2003  Joint  Inclusion  Report  the 
need to make a drive for reducing poverty and social exclusion among immigrants and ethnic 
minorities as one of the six critical priorities. Member States will report in their next National 
Action Plans for social inclusion.  

The  Communication  on  immigration,  integration  and  employment  was  discussed  within  the 
framework  of  the  Employment  Committee  and  of  the  Social  Protection  Committee,  which 

14 
15 

No 859/2003 
See http://europa.eu.int/eures 

EN 

7 

   EN 

 
                                                 
both  adopted  opinions  on  the  subject16.  The  Joint  Employment  and  Joint  Inclusion  Reports 
should serve to monitor progress at EU level. 

6.2.3.  Co-operation on education at EU level 

Within the open method of co-ordination in the field of education and training the first results 
from the working groups set up in 2002/2003 to exchange good practices, develop indicators 
and benchmarks and undertake study visits have identified obstacles which prevent migrants 
from accessing lifelong learning opportunities. Some more specific objectives to successfully 
integrate  migrants  into  the  knowledge-based  economy  and  society  were  also  identified.  A 
priority for future work will be a more in-depth focus on obstacles which migrants are facing 
in education and training. This will be taken into account in the follow-up 2004 Joint Interim 
Report on the implementation of the Lisbon Strategy.  

6.2.4. Improving information on the migration phenomenon 

Following the Action Plan for the collection and analysis of Community Statistics in the field 
of migration17, the Commission is now preparing a proposal for a directive to harmonise the 
collection  of  data  and  statistics.  The  first  Annual  report  on  migration  and  asylum  was 
published this April18.  

6.3. 

Financial support from EU instruments 

Several  EU  financial  instruments  contribute  to  the  integration  efforts  of  the  Member  States. 
Support is available through the Structural Funds, in notably the European Social Fund (ESF), 
the  EQUAL  initiative  and  the  European  action  programmes  in  the  field  of  education, 
employment, combating social exclusion and discrimination. With respect to the instruments 
targeted  specifically  towards  immigrants  the  European  Refugee  Fund  is  the  Community’s 
main  instrument  and  a  new  pilot  project  on  integration  (INTI)  was  launched  in  2003  to 
specifically support policies for the integration of immigrants. For a more detailed overview 
of EU financial instruments and contributing to integration see section 5 in the Annex.  

In  its  proposal  for  the  next  financial  perspectives  covering  the  period  2007-2013,  the 
Commission  is  proposing  that  as  a  part  of  the  objective  to  give  full  content  to  European 
Citizenship  and  within  the  context  of  the  areas  of  freedom,  security  and  justice,  financial 
support will be given to a common policy on immigration for an effective management of the 
sustained migration flows needed to meet the needs of the labour market. In this respect, the 
Union must implement measures within this policy domain, to provide incentives and support 
for  the  actions  of  Member  States  with  a  view  to  promoting  the  integration  of  third  country 
nationals  residing  in  their  countries.  In  the  third  report  on  economic  and  social  cohesion 
proposing a ‘new partnership for cohesion’, the Commission confirmed the need to increase 
through the ESF the employment potential of people who face greater difficulties in accessing 
the  labour  market,  such  as  migrants.  Further  solidarity  is  called  for  in  order  to  support  the 
efforts  of  Member  States  in  enabling  third  country  nationals  of  different  cultural,  religious, 

16 

17 
18 

EN 

the  Employment  Committee 

See  opinions  of 
employment_strategy/opinions2003_en.htm) 
(http://europa.eu.int/comm/employment_social/social_protection_commitee/spc_opinions_en.htm) 
COM(2003)179final 
See Annual report on migration and asylum http://europa.eu.int/comm/justice_home/index.htm 

(http://europa.eu.int/comm/employment_social/ 
Committee 
Protection 

Social 

and 

8 

   EN 

 
                                                 
 
linguistic and ethnic backgrounds to settle and take an active part in all aspects of European 
societies. 

6.4. 

Dialogue with third countries and at international level. 

With respect to building closer relationships with sending countries, efforts have been made 
to  integrate  migration  related  issues  in  EU  external  and  development  policies.19  Migration 
issues are systematically introduced into the dialogue between the EC and many countries of 
origin and transit and a financial co-operation programme has been developed20. This must be 
seen  in  a  wider  context  including  the  growing  importance  of  migration  issues  on  the 
international agenda, including within ILO and the UN Global Commission on Migration. 

7. 

CONCLUSIONS 

This report confirms that immigration continues to play an important role in the economic and 
social  development  of  the  European  Union.  In  the  context  of  an  ageing  and  shrinking 
working-age population, increased immigration flows are likely and increasingly necessary to 
meet the needs of the enlarged EU. Europe must prepare for this. 

In  this  respect,  there  is  a  need  for  a  level-playing  field  in  terms  of  admission  policies  for 
economic migrants across the EU to be able to respond to labour gaps successfully and in a 
more transparent and coherent manner. While bearing in mind the inability of the Council to 
agree  on  the  directive  on  economic  immigration,  the  Commission  hopes  that  the  launch 
shortly  of  a  Green  Paper  will  pave  the  way  for  a  new  European  legal  instrument  on  this 
matter. 

Admission and integration policies are inseparable and should mutually reinforce each other. 
With respect to integration in the labour market, it will be important, at Member States' level, 
to reflect further on the structures and instruments in place, in particular on the capacities to 
identify skills and labour shortages and to ensure higher participation of immigrants in 
the  labour  market.  The  Commission  will  support  the  exchange  of  experiences  on  these 
issues  within  the  framework  of  the  European  Employment  Strategy.  In  this  respect  the 
Commission has proposed a new and ambitious programme of exchange of experiences in the 
context  of  the  Employment  Committee,  which  can  address  these  issues.  The  Community 
Programme for Employment Incentive Measures will also be used to improve the knowledge 
base concerning integration in the labour market. This report has shown that the assessment 
of  skills  and  professional  qualifications  of  immigrants  remains  important  to  make  better 
use  of  their  full  potential.  Facilitating  the  recognition  of  immigrants’  qualifications  by 
applying  to  immigrants  the  same  criteria  for  the  recognition  of  foreign  qualifications  as 
applied to nationals, would be an important step. 

In parallel, Member States are also increasingly concerned about the integration of the newly 
arrived in particular ensuring that immigrants understand and respect the fundamental norms 
and values of the host society and with respect to language abilities, which are major barriers 
to  integration.  Inevitably  Member  States  will  be  reluctant  to  open  up  for  further  economic 
migration,  unless  they  are  able  to  integrate  newcomers  well  into  all  aspects  of  society.  The 
need  for  specific  integration  measures  is  also  a  concern  raised  by  third  countries  during 

19 
20 

See COM(2002)703 
See also SEC(2003)815 of 9/07/03 

EN 

9 

   EN 

 
                                                 
discussion  of  migration  issues.  This  highlights  the  need  to  strengthen  and  develop  policy 
instruments to address the integration of third country nationals, in connection with progress 
on admission policies. The INTI Preparatory Actions are a further step to promoting specific 
integration  measures  for  third  country  nationals  by  providing  new  ideas,  exchanging  good 
practice and identifying priorities.  

Efforts  are  needed  to  boost  the  integration  of  existing  immigrants.  This  calls  for 
comprehensive integration policies, combining both mainstreaming and specific programmes. 
Mainstreaming  immigration  means  actively  and  openly  taking  into  account  immigrant 
issues in all relevant policies and measures at EU and national level. One of the aims of the 
Annual  Report  on  Migration  and  Integration  is  to  ensure  that  the  needs  of  immigrants  are 
properly streamlined in all EU policies affecting them and to inform the Council on progress 
made.  This  first  report  shows  that  in  some  major  policy  fields  the  mainstreaming  of 
immigration  issues  remains  slow  and  that  further  efforts  are  needed  to  develop  effective 
policies.  

immigration, 

integration  and  employment,  within 

A number of commitments have, however, been taken at EU level since the adoption of the 
Communication  on 
the  European 
Employment Strategy and the Social Inclusion Process in particular, and some positive trends 
are  noticeable  at  national  level.  However,  most  commitments  still  need  to  be  translated 
into action; recourse to targets is limited and developing a more systematic and comparable 
collection  of  information  and  data  at  Community  level  is  crucial  to  allow  for  better 
monitoring  of  the  impact  policies  have  on  immigrants.  The  Commission  will  pay  particular 
attention  to  monitoring  the  progress  achieved  by  the  Member  States  in  the  next  National 
Action  Plans  for  employment  and  those  for  social  inclusion.  Moreover,  exchange  of 
experiences within the National Contact Points on Integration will also be of help to ensure 
mainstreaming  of  immigration  concerns  at  national  and  EU  level  and  the  development  of 
good practice which addresses the specificities of the target groups. In the light of the rising 
importance of and of the priority given to migrants’ integration in Community funding, it is 
important  that  information  on  the  use  of  such  funds  to  promote  migrants  integration  is 
improved.  

To  make  progress,  it  is  important  to  increase  dialogue  with  migrant  organisations. 
Dialogue between different communities built on mutual confidence is a crucial condition for 
supporting  migrants’  integration  and  maintaining  social  cohesion.  At  EU  level  the 
Commission  encourages  immigrants  to  take  an  active  part  in  the  debate.  This  report  has 
shown  that  integration  policies  and  religious  and  cultural  issues  continue  to  be  major 
challenges  in  most  Member  States.  With  a  view  to  enhancing  the  dialogue  with  migrant 
organisations  and  as  a  mean  to  overcome  prejudices,  ignorance  and  intolerance  as  well  as 
religious  extremism  within  the  EU,  the  Commission  will  give  priority  to  the  creation  of 
networks and co-operation under the INTI preparatory actions for 2005.  

Another  major  issue  is  the  growing  diversity  of  populations  in  European  cities  which 
remains  a  challenge  for  many  Member  States.  It  will  be  important  to  strengthen  efforts  to 
exchange experiences and best practices at EU level, in particular in the context of the Social 
Inclusion  Strategy.  The  Commission  will  also  propose  to  the  national  contact  points  on 
integration to include this subject in its work programme. 

The  establishment  of  a  common  legal  framework  setting  out  the  rights  and  obligations  of 
third country nationals, underpins the EU approach to the integration of immigrants. The first 
EU  directives  have  now  been  adopted  and  the  Commission  will  closely  monitor  their 

EN 

10 

   EN 

 
transposition into national legislation. The Commission will also review the level of political 
rights granted to third country nationals during this process.  

The  legislative  framework  and  the  policy  instruments  described  above  constitute  important 
components  in  the  practical  implementation  of  integration  measures.  There  is  a  need, 
however,  for  greater  coherence  with  respect  to  the  objectives  which  such  measures  seek  to 
fulfil.  In  addition  the  Thessaloniki  European  Council  stressed  the  need  for  developing  a 
common European framework within  which national policies should develop and envisaged 
the definition of common basic principles with a view to intensify the development of such 
a framework. The Commission will make the necessary proposals to define a set of common 
principles which could become the basis for the adoption of specific objectives to be pursued 
in the relevant policy fields.  

The national contact points on integration can play an important role in this process. They will 
have an important contribution to make in order to monitor progress across policy fields and 
ensure  that  efforts  at  national  and  EU  levels  are  mutually  reinforcing.  Based  on  their 
experiences in developing the handbook on integration they should also identify a number of 
priority areas and make recommendations for further co-operation between Member States. In 
light  of  these  developments  and  with  a  view  to  strengthening  the  European  framework  for 
integration ahead of the new constitutional Treaty, the Commission will consider the need for 
setting  up  a  more  formal  basis  within  which  exchange  of  information  on  integration  could 
take  place  in  the  future  without  prejudices  to  the  European  Employment  Strategy  and  the 
European Inclusion Strategy.  

EN 

11 

   EN 

 
ANNEX 

1. 

MIGRATION TRENDS IN EU-25 

In  2002  only  Latvia,  Lithuania  and  Poland  showed  a  negative  crude  net  migration  rate21. 
Especially in countries like Germany, Greece, Italy, Slovenia and Slovak Republic, which are 
experiencing  negative  natural  growth,  migration  makes  an  important  contribution  to 
population  increase.  Despite  a  positive  migration  rate,  the  Czech  Republic,  Estonia  and 
Hungary are experiencing a population decline due to high negative natural increases. 

In 2002, the annual crude net migration rate was 2.8 per 1 000 population in EU-25. Estimates 
show that during the period 1990-2002, these rates were generally positive in the EU-15 and 
often negative in some of the new Member States. These estimates, which give an indication 
of  the  role  of  migration  in  population  change,  show  that,  on  the  whole,  there  were  more 
immigrants coming into the EU-15 than emigrants going out and that the reverse was true for 
most of the acceding countries.  

To  get  a  full  understanding  of  migration  trends  it  would  be  interesting  to  look  at  the  total 
number of third-country nationals recorded as legally residing in EU-25. The total number of 
third-country  nationals  living  in  the  15  Member  States22  in  2001  was  estimated  to  be  14.3 
million, the equivalent of 3.8% of the total population. Unfortunately figures for third-country 
nationals  living  in  all  25  countries  are  not  available.  However  the  total  number  of  non-
nationals23 living in the 25 countries is known although there is no data for 2001 for France, 
Ireland, United Kingdom, Cyprus, Estonia, Malta, Poland and the Slovak Republic and this is 
why the number of non-nationals only amounts to 15 million, which is equivalent of 5.0% of 
the  total  population.  Belgium,  Germany  and  Austria  have  sizeable  non-national  populations 
(around  9%).  Next  come  Greece  and  Sweden  with  respectively  about  7.0%  and  5.5%. 
Luxembourg  is  an  unusual  case  with  non-nationals  accounting  for  just  over  one-third  and  a 
quarter  of  the  population.  It  should  be  noted  that  differences  between  countries  in  terms  of 
non-national populations partly reflect differences in national legislation on the acquisition of 
citizenship.  

Among the non-nationals, around one-third are citizens of another EU-25 Member State and 
the  remaining  two-thirds  (9  million  people)  are  third  country  nationals.  Belgium  and 
Luxembourg  are  the  only  countries  where  other  EU-25  nationals  outnumber  third  country 
nationals. In 2001 the largest group of third country nationals living in the Union was Turkish 
citizens (around 2.4 million of whom 2.0 million in Germany). 

21 

22 
23 

Comparable  immigration  and  emigration  data  are  not  available  for  all  countries,  meaning  that  it  is 
impossible  to  calculate  net  migration  directly  by  subtracting  emigration  from  immigration.  Net 
migration  is  instead  estimated  here  as  the  change  in  population  that  cannot  be  attributed  to  natural 
change (births minus deaths). Net migration figures give an indication of the importance of migration as 
a component of population change, but do not provide clear information about the size of the separate 
immigration  and  emigration  flows.  For  example,  low  positive  net  migration  could  indicate  high 
emigration but even higher immigration, or equally, zero emigration and low immigration. 
Source:Eurostat (data from UK are estimates from previously published UK figure). 
Non-nationals  includes  both  third  country  nationals  and  other  EU-country  nationals  living  in  another 
EU Member State. 

EN 

12 

   EN 

 
 
                                                 
Sweden,  The  Netherlands  and  Denmark  have  the  highest  ratio  of  non-nationals  acquiring 
citizenship24.  Luxembourg  and  Greece  show  the  lowest  relative  numbers.  In  these  countries 
there  were  fewer  than  5  cases  of  newly  acquired  citizenship  per  1,000  non-nationals  in  the 
country.  Compared  with  1990,  in  almost  every  country  the  ratio  of  the  number  of  people 
acquiring citizenship to the non-national population has increased. 

During  2001,  excluding  seasonal  employment,  the  majority  of  residence  permits  in  the  EU-
countries who supplied data, were granted for the purposes of family formation, employment 
or  study.  Within  these  categories,  the  reasons  for  granting  residence  permits  can  vary 
dramatically  between  Member  States,  some  granting  the  majority  of  permits  for  reasons  of 
family formation, whilst others almost exclusively for employment purposes. For instance in 
Sweden,  over  70%  of  residence  permits  were  granted  for  purposes  of  family 
formation/reunification.  In  Belgium  and  Denmark  this  was  the  reason  in  over  50%  of  cases 
and  in  Austria,  Finland,  France  and  Italy  it  applied  to  between  20%  and  30%  of  cases.  In 
Germany and Spain, a residence permit was granted for employment purposes in over 80% of 
cases  and  in  Italy,  in  over  50%  of  cases.  Looking  at  the  EU  overall,  nearly  40%  of  all 
residence permits were granted for the purpose of employment whereas 30% were granted for 
the purpose of family reunion.  

A lack of complete and comparable data hampers the analysis of migration and caution should 
be taken. Being foreign born is not necessary an indicator of being an immigrant from another 
country.  The  statistics  on  net  immigrant  flows  most  likely  underestimate  the  real  level  of 
migration  due  to  movements  of  illegal  or  clandestine  immigrants.  Illegal  immigration  flows 
are  obviously  not  included  in  official  statistics  and  can  only  be  estimated  with  difficulty. 
Furthermore,  emigration  flows  are  not  well  recorded  and  there  are  no  data  on  outflows  of 
immigrants from the labour market in most countries and on changes of “category”, such as 
the  number  of  immigrants  or  of  third  country  nationals  who  stop  working,  retire,  are 
naturalised or return to their country of origin. 

In the context of the enlarged EU, it is important not to confuse immigration by third-country 
nationals and internal mobility of EU citizens, including those from the new Member States. 
While the income gap between the new Member States and the EU-15 is likely to diminish to 
some extent over the transition period, the basic incentives to migrate will – in all likelihood – 
not be fundamentally different from now. Therefore, the economic rationale for maintaining 
restrictions  on  the  free  movement  of  workers  after  accession  may  be  weaker  than  often 
assumed25.  Applying  temporary  curbs  on  labour  mobility  from  the  new  Member  States  will 
only distribute inflows over a longer period of time, delay the overall movement of workers 
and  may  introduce  “biased”  destination  patterns  of  flows  into  the  EU-15,  with  the  risk  of 
distorting  mobility  on  a  more  permanent  basis.  A  study26  for  the  Commission  came  to  a 
similar  conclusion  concerning  the  transition  periods  and  confirmed  previous  research  that 
flows  of  workers  following  enlargement  will  be  fairly  moderate.  The  enlargement  of  the 
Union is therefore not expected to have a major impact on the future need for immigration. 

24 
25 

26 

Eurostat, Statistics in Focus, Population and Living Conditions, Theme 3 – 3-2004.  
Virtually all old Member States have maintained restrictions on access to their labour market, at least 
for the first two years following accession.  
German Institute for Economic Research, Potential Migration from Central and Eastern Europe in the 
EU 15 – An Update; DG EMPL, October 2003. 

EN 

13 

   EN 

 
                                                 
2. 

MIGRANTS IN THE LABOUR MARKET AND ECONOMIC AND PUBLIC FINANCE ASPECTS 
OF IMMIGRATION 

Migration helps to sustain employment growth  

Between 1997 and 2002 the number of people employed27 in the EU-15 increased by about 12 
million, out of which 9.5 million were EU-nationals and more than 2.5 million, third-country 
nationals. While the share of third-country nationals in total employment was 3,6% in 2002, 
they  contributed  to  employment  growth  by  22%.  In  1997,  the  employment  rates  of  EU-
nationals  already  stood  at  79%  for  the  medium  skilled  and  at  87.5%  for  the  high  skilled  in 
2002  they  had  further  risen  to  81.6%  and  89%  respectively,  and  thereby  reaching  levels 
difficult to increase any further. A similar development is seen among third-country nationals. 
The number of medium skilled increased by 50% and that of high skilled doubled, amounting 
to  more  than  60%  of  the  total  increase  in  their  employment.  This  reflects  not  only  the  well 
know fact that migrant labour strongly reacts to cyclical variations in  economic  activity but 
also migrants labours over proportional contribution is sustaining employment over a 5-year 
period,  which  is  characterised  predominantly  by  solid  economic  and  strong  employment 
growth. The situation for the low skilled is somewhat different, with more modest increases in 
both groups but still stronger for third-country nationals than for EU-nationals. 

Given the extremely high levels of employment already reached by skilled EU-nationals, third 
countries'  labour  is  increasingly  appearing  as  a  major  potential,  which  can  be  tapped  to 
respond to the growing demand for skilled labour while continuing to respond to the demand 
for low skilled labour. 

An unused employment potential among third-country nationals28 

Over  the  last  decade  third-country  nationals'  unemployment  has  remained  higher  than  EU-
nationals', more than twice as high in a majority  of Member States. Third-country nationals 
have also much lower employment rates than EU-nationals (by 14 percentage points lower in 
2002), in particular in the prime-age group (by 20 percentage points lower) and for the high 
skilled. The gap is on average wider for women than for men, within all working age groups.  

Migrants  workers  are  not  only  concentrated  in  a  few  sectors,  but  within  them,  in  the  lower 
skilled  segments.  “Education”,  “care”  and  “health”  progressively  emerge  as  new  sectors  of 
employment, notably for newly arrived migrants while young people of foreign origin tend to 
be  increasingly  working  in  jobs  with  a  “national  profile”29.  Whether  these  changes  mean  a 
better starting point for migrants' longer term integration in the labour market is questionable 
as  they  still  tend  to  remain  concentrated  in  low  quality  service  jobs  offering  little  room  in 
terms of adaptability and mobility. 

Educational attainments remain lower also for the younger generations. In 2002, at 35%, the 
share of the 18-24 year olds having lower secondary education or less and being not in further 
education  and  training  was  twice  as  high  for  third-country  nationals  than  for  EU  nationals. 
More than 60% of third-country nationals aged 15-24, were low skilled and 5% highly skilled 

27 

28 

29 

Defined as the number of people employed in the working age population (15-64) in the Community 
Labour Force Survey. 
This  section  highlight  the  key  findings  form  ”Employment  in  Europe  2003”,  where  the  Commission 
analysed this important issue in detail. 
OECD, "Trends in international migrations", 2003, part I 

EN 

14 

   EN 

 
                                                 
compared with 46% and 8.5% for EU-nationals. Improving migrants' integration in the labour 
market  requires  breaking  the  vicious  circle  of  a  low  skill  level  giving  access  to  sectors  and 
jobs, which in turn, offer poor chances of improving their skills.  

Although  newly  arrived  third  country  migrants  tend  on  average  to  have  a  higher  skill  level 
than  those  established  for  several  years  in  the  EU,  their  activity  rates  are  lower  and  their 
unemployment rates higher than for longer established immigrants. At 45%, the employment 
rate of immigrants who arrived in 2001 was nearly 20 points below that of those who arrived 
10 years before. 

Differences  in  employment  performances  of  third  country  nationals  seem  to  be  strongly 
related to the country of origin, for women in particular 

The  employment  rate  of  migrants  from  African  countries  and  Turkey  is  dramatically  lower 
than for EU-nationals whatever the skill level and the gap is more marked for women. This is 
not the case for migrants from Balkan countries, whose employment rates are at or over EU-
nationals'  levels  both  for  men  and  women.  Differences  appear  however  less  marked  when 
considering  country  of  birth  instead  of  nationality  as  shown  by  result  of  recent  research 
conducted for the Commission. 

The situation of migrants in the labour market in the new Member States  

Community  Labour  Force  Survey  data  are  not  robust  enough  to  provide  a  comprehensive 
picture  of  migrants'  employment  in  the  new  Member  States.  Available  information  for 
Slovenia, the Czech Republic, Poland and Slovakia 30 relates to the situation before accession 
and  considers  both  EU  and  third  country  nationals  workers  as  migrant  workers  and  it  only 
allows  for  rough  estimates  based  on  the  number  of  work  permits  and  trade  licenses 
delivered31.  In  the  new  Member  States,  the  great  majority  of  migrant  workers  come  from 
neighbouring countries, including the former USSR and the Balkans. In Slovenia, 93% of the 
foreign workers come from former Yugoslavia. Foreign workers from Ukraine, Belarus and 
the Russian Federation represent the majority in Poland and between 27 and 36% in the Czech 
Republic. Both countries have also a sizeable share of migrant workers from Asian countries, 
notably Vietnam. 

Migration trends are changing in the new Member States and, as in old EU countries, migrant 
labour  plays  a  part  in  adjusting  for  labour  and  skill  shortages  provided  the  immigrants  are 
integrated  in  the  labour  market.  In  Cyprus,  labour  market  adjustments  rely  heavily  on 
migrants  employed  on  a  temporary  basis,  in  particular  in  "hotels  and  restaurants"  and  in 
"private households" who represented 10.2% of the employed workforce in 200232. In Central 
and Eastern European new Member States, migrants from EU-15 represent a marginal share 
of  migrant  workers  (around  2.5%  in  the  Czech  Republic,  for  example)  but  helped  by 

30 

31 

32 

"Migration  Trends  in  selected  EU  Applicant  Countries",  International  Organisation  for  Migration, 
Vienna, 2004 
In  Poland  the  number  of  work  permits  fluctuated  between  15,300  and  17,800  per  year  between  1997 
and  2002,  in  Slovenia  between  34,000  and  40,000.  In  the  Czech  Republic,  the  total  number  of  work 
permits  declined  from  130,767  in  1997  to  103,652  in  2001,  but  adding  trade  licenses  the  number  of 
migrant  workers  can  be  estimated  at  around  167,600  in  2001.  In  Slovakia  around  9,000  non  national 
citizens were officially working in 2002 
Supporting document SEC (2003)1361 to Commission Communication "Progress in implementing the 
Joint assessment Papers on employment policies in acceding countries" COM (2003) 663 final. 

EN 

15 

   EN 

 
                                                 
responding  to  the  demand  for  new  skills  led  by  the  economic  transformation.  They  are 
generally high skilled, employed in managerial and professional occupations on a temporary 
basis  and  concentrated  in  big  cities.  Migrants  from  Central  and  Eastern  Europe  and  the 
Balkans,  on  the  other  hand,  work  mainly  in  industry  (textile  and  food  in  particular), 
construction and agriculture in manual, unskilled jobs or, in the case of women, as domestic 
helpers, carers for children and elderly people. Traditionally, migrants from Asia have been 
mainly  entrepreneurs,  running  small  family  businesses,  notably  in  the  retail  and  textile 
industries. 

Economic and public finance aspects of immigration33 

Economic theory is relatively optimistic with respect to the economic impact of immigration, 
suggesting overall welfare gains. Immigrant workers can improve the allocation of workers to 
firms and may ease labour shortages in areas in which natives do not want to work. As they 
tend  to  be  more  responsive  than  local  workers  to  labour  market  conditions,  immigrant 
workers  may  help  to  smooth  the  adjustment  of  labour  markets  to  regional  differences  or 
shocks.  Moreover,  the  increase  in  human  capital from  immigration  contributes  to  long-term 
growth, in addition to the purely quantitative impact of increases in the labour force. 

A  large  part  of  the  gains  accrue  to  the  immigrants  themselves  (and  to  their  families  in  the 
source countries receiving remittances), but most studies find a small “immigration surplus” 
for the native population as well. However, the distributional impact tends to be significant, as 
costs and benefits are not evenly distributed among the resident population. Studies typically 
show complementarities between skilled domestic workers and unskilled migrants and some, 
although weak, substitution between unskilled migrants and domestic workers. In cases of a 
rapid  increase  in  labour  supply  not  matched  by  an  increase  in  the  capital  stock,  additional 
migration  could  thus  lead  to  income  redistribution  from  native  workers  to  capital-owners, 
with unskilled labour probably having to shoulder a major share of the burden. Thus, a shift 
towards  a  better  balanced  skill-mix  of  migrants  should  be  conducive  to  alleviating 
distributional  concerns.  Moreover,  additional  migration  may  well  be  accompanied  by 
additional capital investment over the medium term, particularly if migration reduces supply 
barriers to economic activity such as labour or skill shortages.  

The Communication on immigration, integration and employment concluded that while using 
immigration to fully compensate for the impact of demographic ageing on the labour market 
is  not  a  realistic  option,  increased  immigration  flows  are  not  only  likely  but  necessary.  The 
existing  literature  confirms  that  migration  can  contribute  to  mitigating  the  ageing  process 
significantly  if  migration  rates  remain  at  their  historical  levels  or  increase  further,  without 
being a solution to ageing populations. In fact, the level of net migration required in order to 
maintain  the  old-age  dependency  ratio  at  its  2000  level  would  entail  enormous  increases  of 
inflows relative to current levels. The EUROSTAT demographic scenario used as a basis for 
the projections of public expenditure on pensions and health care already assumes significant 
net  in-migration  of  some  30  million  in  total  until  2050.  Thus  even  somewhat  higher  net 
immigration  would  not  dispense  policy  makers  from  implementing  the  EU’s  internal 
structural  reform  agenda  to  cope  with  the  impact  of  ageing  populations.  In  particular,  in  all 
Member States timely preparations to tackle the budgetary implications of ageing will have to 

33 

This  section  is  largely  based  on  a  note  prepared  by  Commission  services  for  the  Economic  Policy 
Committee, “Economic aspects of immigration”, ECFIN/361/03 en. 

EN 

16 

   EN 

 
                                                 
rely  on  the  three-pronged  strategy  of  raising  employment  rates,  reducing  public  debt,  and 
reforming pension systems34. 

An  important  element  in  the  public  debate  over  immigration  has  been  the  impact  on  public 
finances.  Indeed,  several  recent  studies  have  shown  that  welfare  dependency  ratios  of 
migrants  have  increased  in  some  countries  in  absolute  terms  and  relative  to  the  native 
population35.  Basically,  the  higher  probability  of  migrant  households  relative  to  native 
households  to  depend  on  social  welfare  programmes  is  a  result  of  their  human  capital  and 
other socio-economic characteristics, with lower education, a lower age of the household head 
and a higher number of children being the prime factors. Typically, after controlling for these 
“observable” characteristics, there remains only a small part of “residual” welfare dependency 
of migrants over and above those of natives. Moreover, these studies find somewhat stronger 
tendencies for migrants to stop depending on welfare assistance than in the US. Welfare usage 
of  non-humanitarian  migrants  seems  to  be  at  least  in  some  cases  well  below  that  of 
humanitarian  migrants,  and  non-humanitarian  migrants  tend  to  stop  depending  on  welfare 
more  rapidly  than  other  migrants.  Thus,  part  of  the  increase  in  welfare  dependency  of 
migrants can be traced back to higher numbers of asylum seekers and refugees, who are not, 
or only under restrictive conditions, permitted to work. 

3. 

OVERVIEW  AND  BROAD  TRENDS  IN  NATIONAL  POLICIES  ON 
INTEGRATION  

The  definition  and  content  of  integration  policies  differ  widely  in  terms  of  scope,  target 
groups and actors. Some Member States are combining both actions targeted specifically on 
migrants and a mainstreaming approach; others have a less comprehensive, more fragmented 
strategy, which is often project-based. For long-term resident immigrants, ethnic or national 
minorities and asylum seekers, the policies carried out differ significantly from one Member 
State to another36. For newly arrived immigrants and refugees, policies are more similar and 
are  generally  based  on  national  introduction  programmes  consisting  of  three  main 
components: language tuition, civic orientation and education, and professional labour market 
training.  

The actors involved in developing integration policies vary a lot across Member States. When 
a  mainstream  approach  prevails,  public  actors  responsible  for  integration  policies  are  less 
identifiable, with an overall responsibility often given to the Ministry for Home Affairs and/or 
for Social Affairs. Authorities in charge of policies for specific target groups are more visible. 
Integration strategies are defined at national level but often implemented by regional and local 
authorities. Some countries try to involve social partners while others rely mainly on NGOs.  

The  diversity  of  approaches  and  actors  reflects  different  policy  priorities,  as  well  as  the 
specific  history  and  patterns  of  migration  flows  within  each  country.  As  several  Member 
States  have  recently  changed  from  being  emigration  countries  to  immigration  countries,  the 
need  for  comprehensive  integration  strategies  has  increasingly  been  recognised.  This  is,  for 
instance,  the  case  of  many  new  Member  States,  where  emphasis  has  long  been  put  on 
addressing minority issues, rather than on integrating newcomers.  

34 
35 

36 

Joint Report on pensions. 
A number of studies focus on Germany; some recent evidence is available for Sweden, the Netherlands 
and Denmark. 
See European Commission, COM(2003)336 Annex 1 Synthesis report on national integration policies. 

EN 

17 

   EN 

 
                                                 
Member States have committed themselves to significantly reduce the unemployment gaps 
between non-EU and EU nationals.  

Lacking  a  job  is  often  perceived  as  the  most important barrier to  integration and promoting 
immigrant participation in the labour market is identified as a central policy priority. This is 
echoed by the vast majority of the National Contact Points on Integration who identify lack of 
access to employment as being the greatest barrier to integration and thus the most important 
political  priority  within  national  integration  policies.  Under  the  European  Employment 
Strategy,  Member  States  are  called  upon  to  promote  the  integration  of  and  combat 
discrimination  against  immigrants  and  ethnic  minorities  in  the  labour  market.  In  particular, 
Member States are committed to significantly reduce the  unemployment gaps between non-
EU  and  EU  nationals  by  2010,  according  to  national  targets.  Skills  gaps  and  discrimination 
certainly  play  a  role.  Lack  of  language  skills  and  difficulties  regarding  recognition  of 
professional skills and qualifications are also important barriers. The analysis of the National 
Action Plans for Employment for 2003/2004 shows some promising policy developments. A 
growing number of Member States (BE, DK, FR, PT, SE) are taking measures to improve the 
recognition  of  qualifications  and  competences  of  migrants  obtained  outside  the  EU.  Special 
efforts  are  being  carried  out  to  improve  job  guidance  and  job  counselling  for  migrants.  For 
instance,  the  French  public  employment  service  has  nominated  officials  in  charge  of  the 
coordination  of  the  reception  of  migrants  in  order  to  facilitate  their  access  to  employment 
services. In Belgium, regional public employment service also provides information about the 
rights  of  job  seekers  when  confronted  with  discrimination.  The  potential  of  migrants  to 
establish  themselves  as  entrepreneurs  is  also  increasingly  recognised.  In  Germany,  for 
example,  several  measures  are  developed  to  attract  more  foreign  workers  to  start  their  own 
business by better counselling, improved information and targeted public relation measures.  

However, little progress is seen in a number of other policy areas. Targets reflecting the one 
agreed  at  EU  level  have  not  been  set  at  national  level,  except  for  the  Netherlands,  France, 
Denmark  and  Ireland.  The  Netherlands  for  example  has  committed  itself  to  raising  the 
employment  rate  of  ethnic  minorities  to  54%  by  2005  whereas  Denmark  has  set  a  target  of 
having  a  minimum  of  3.5%  of  people  from  a  migrant  origin  in  the  public  sector.  Although 
anti-discrimination measures in the workplace are considered crucial, not all Member States 
seem to give the necessary importance to this issue. The involvement and the commitment of 
the  social  partners  are  increasing  but  still  limited.  The  evaluation  of  the  effectiveness  of 
policies  is  scarce.  A  counter-example  is  Sweden,  which  has  recently  appointed  officials  to 
review  the  effectiveness  of  reception  and  induction  schemes  for  immigrants  and  refugees. 
Finally,  many  occupations  remain  inaccessible  for  non-EU  nationals  on  the  ground  of 
nationality shifted recently its policy by authorising non-EU nationals to access occupations 
in the civil service.  

Language tuition for newly arrived immigrants is gaining in importance 

Some immigrants are highly educated and already speak the language of their host country. 
Immigrants bring with them a language resource which the EU needs to capitalise on and their 
language and intercultural skills may well be better than those of their hosts. Language skills 
and the improvement of the educational attainment are, however, identified as key challenges, 
not just to ensure integration in the labour market, but to integrate into society at large. Poor 
language skills are not only influenced by learning abilities  and  the  lack  of  interaction  with 

EN 

18 

   EN 

 
the host society, but are perhaps also a result of shortage of financial resources37. Generally 
Member States seem to be focussing more on immigrant’ language abilities and an increasing 
number of countries are providing specific language tuition for newly arrived immigrants and 
refugees.  Germany  for  instance  is  proposing  600  hours  of  language  training  in  their 
anticipated national integration programme. At the same time the focus has increased in some 
countries on the responsibility of the immigrant to integrate and learn the language of the host 
society.  In  the  Netherlands  an  increased  responsibility  on  the  newcomers  for  his  or  her 
integration is envisaged by placing the cost of the introduction programme on the newcomer 
and requiring an integration exam. 

The provision of civic education to new immigrants is growing 

Confusion  and  ignorance  surrounding  immigration,  social  and  cultural  issues  is  widespread, 
as  highlighted  by  the  on-going  discussions  in  several  Member  States  on  the  wearing  of 
cultural  and  religious  symbols.  These  difficulties  are  also  echoed  by  Member  States  which 
have  highlighted  the  increasing  need  for  providing  civic  education  or  orientation  to  new 
immigrants, such as information about fundamental rights and obligations, including equality 
of men and women, basic norms and the core values of the host society. Such efforts could be 
seen  as  an  increased  recognition  of  the  need  for  developing  and  implementing  a  holistic 
approach  to  integration,  which  should  include  measures  to  facilitate  civic,  cultural  and 
political  participation.  Member  States  still  have  difficulty  in  achieving  the  delicate  balance 
between  on  the  one  hand  the  adaptation  from  migrants  and  on  the  other  hand  the  changes 
required in society. 

Some progress in granting political rights to immigrants at local level 

Participation in the political decision-making process is certainly an important formal step to 
granting  foreigners  similar  rights  and  obligations  as  EU-nationals.  Participation  in  political 
life  has  been  and  is  currently  under  discussion  in  some  Member  States.  Belgium  and 
Luxembourg for example have recently adopted new legislation granting the right to vote to 
foreign residents under certain conditions. The majority of both new and old Member States 
have now granted some level of electoral rights to immigrant at the local level and with the 
forthcoming  transposition  of  the  Directive  concerning  the  status  of  third-country  nationals 
who are long-term residents38, there will be an opportunity for the remaining Member States 
to consider granting more political rights to immigrants. The European Parliament considers 
that Member States should ensure the right to vote in local and European elections, but has 
emphasised that civic citizenship implies more than that, including ensuring that citizenship 
requirements are non-discriminatory39. 

37 

38 

39 

Currently there are no specific Community measures to fund language courses for individual migrants 
as the responsibility for the organisation of education and training systems rests with Member States. 
There are however projects under the Socrates and Leonardo da Vinci, which seek to encourage sharing 
of experiences and good practice in the teaching of immigrants. 
Council Directive 2003/109/EC of 25 November 2003. Deadline for transposition into national law is 
23 January 2006 cf. art. 26. 
Report on the Communication from the Commission on immigration, integration and employment from 
the European Parliament, 1 December 2003, A5-0445/2003. 

EN 

19 

   EN 

 
                                                 
Making a drive to reduce the risks of poverty and social exclusion is a critical challenge 

Under  the  European  common  objectives  to  combat  poverty  and  social  exclusion  adopted  in 
December  2002  emphasis  was  placed  on  the  need  to  tackle  the  specific  social  risks 
experienced by immigrants. An analysis of the National Action Plans for Social Inclusion for 
2003-200540  shows  that  a  more  determined  action  is  needed.  While  Member  States  identify 
immigrants among those particularly at risk of poverty and social exclusion, many countries 
still fail to provide in-depth analysis of the factors leading to this situation. Little attention is 
given to promoting access to resources, rights, goods and services, in particular to appropriate 
healthcare.  

… and access to affordable housing is a particular problem  

The urban settlement and housing of immigrants, in particular, are still causing difficulties. A 
number  of  Member  States  are  struggling  to  provide  affordable  housing  and  to  address  the 
negative consequences of segregation and deprived urban areas, where immigrants tend to be 
over-represented.  Some  Member  States  are  introducing  new  approaches  to  overcome  this 
problem  by  linking  admission  and  housing  policies.  Italy,  for  example,  has  decided  to 
introduce  a  new  system  where  the  employer  has  to  guarantee  housing  under  a  “contract  of 
stay for work”.  

Fighting discrimination must be stepped-up 

The  fight  against  discrimination  and  racism  has  been  rendered  even  more  complex  in  the 
recent political climate, with the sometimes negative stereotyping of immigrants in the media 
and the rise in support for far-right political parties in some Member States. Specific actions 
to  promote  the  integration  of  immigrants  must  be  complemented  by  measures  to  tackle 
discriminatory  barriers.  Policies  to  combat  discrimination  and  racism  are  not  always 
connected  to  the  integration  strategies  pursued  by  the  Member  States.  There  is,  however,  a 
clear  recognition  of  the  need  to  act.  Most  EU  citizens  acknowledge  that  members  of  ethnic 
minorities would stand less chance of getting a job  or  training,  even  with  the  same  level  of 
qualifications as other candidates, and more than 80% of EU citizens believe that it is wrong 
to treat people differently on the basis of their racial or ethnic origin41. The transposition of 
the  2000  EU  legislation  banning  discrimination  on  grounds  of  racial  or  ethnic  origin  in 
employment  and  beyond42  has  acted  as  a  catalyst  for  progress  by  forbidding  discriminatory 
attitudes,  behaviour  and  practices  and  establishing  in  each  Member  State  specialised  bodies 
responsible  for  promoting  equality  and  combating  racial  discrimination,  which  are  now 
becoming operational.  

40 

41 
42 

See  2003  Joint  Inclusion  Report,  as  well  as  national  action  plans  for  social  inclusion  on 
http://europa.eu.int/comm/employment_social/news/2001/jun/napsincl2001_en.html 
See Eurobarometer survey on Discrimination in Europe published by the Commission in June 2003. 
Council Directive 2000/43/EC. 

EN 

20 

   EN 

 
                                                 
4. 

OVERVIEW  OF  FINANCIAL 
INTEGRATION OF IMMIGRANTS  

INSTRUMENTS  AND  THEIR  CONTRIBUTION  TO 

Several  EU  financial  instruments  and  initiatives  contribute  to  the  integration  efforts  of  the 
Member  States.  Financial  support  is  available  through  the  Structural  Funds,  and  from  the 
European Social Fund (ESF) in particular. Some of the activities supported under the five ESF 
priorities have relevance for the integration of immigrants although it is difficult to quantify 
their contribution as such at EU level since the ESF programmes do not have a target group 
approach and legally resident third-country nationals are eligible for ESF funding on the same 
footing as EU nationals. Over 2000-2006, the ESF will spend some € 12.5 billion (20 % of the 
budget for the period) under the policy field addressed at promoting equal opportunities for all 
in  accessing  the  labour  market.  As  an  example43  of  support  for  immigrants,  projects  and 
measures have been identified in the programming documents of a number of Member States 
(BE,  LU,  FR,  ES,  EL,  NL)  amounting  to  €  260  million.  The  activities  include  counselling, 
training, guidance, employment support and measures to facilitate labour market integration. 
Another  example  is  the  Objective  3  Community  Support  framework  for  UK,  with  an  ESF 
allocation of more than € 4 billon, under which ethnic minorities and refugees represent 28% 
of the beneficiaries of active labour market measures. 

The  European  action  programmes  in  the  field  of  education  also  have  relevance  for  the 
integration of immigrants. The Grundtvig actions, under the Socrates  programme,  aiming  at 
making  lifelong  learning  opportunities  more  widely  available  to  citizens  in  Europe,  have 
supported a number of projects addressing the learning needs of immigrant communities so as 
to secure their fuller participation in civil society and more effective access to, and progress 
within, the labour market. In 2003, 28% of the projects supported by Grundtvig related to the 
education of migrants (as primary or indirect beneficiaries) and refugees. Migrants’ children 
is  also  an  overall  priority  for  Comenius.  17%  of  the  projects  in  the  period  2000-2003 
supported at Community level where targeted specifically at migrants children. The Leonardo 
da  Vinci  programme,  implementing  the  EU’s  vocational  training  policy,  also  supported  in 
2001  and  2002  a  number  of  projects,  which  have  migrants  and  refugees  among  their 
beneficiaries.  

Across the EU, transnational exchanges have developed within the framework of the EQUAL 
initiative and of the European action programmes in the field of employment, to combat social 
exclusion  and  to  combat  discrimination,  which  all  include  activities  of  relevance  to  the 
integration of immigrants. Under the EQUAL44 initiative an amount of € 225 million supports 
partnership projects related to  the  integration  of  disadvantaged  groups  in  the  labour  market. 
The  beneficiaries  include  certain  categories  of  migrants  and  a  number  of  projects  are 
dedicated  to  asylum-seekers.  Under  the  various  programmes,  several  studies  and  "peer 
review" activities are planned or on-going, for instance on the contribution of immigration to 
labour supply and the impact of different immigration patterns on employment and growth, on 
the integration of immigrants into the labour market, on policies to involve social partners in 

43 

44 

The following examples only illustrate the type of support provided by ESF to third country nationals. 
A  more  global  and  accurate  overview  of  the  support  could  only  be  provided  after  requesting  and 
obtaining from Member States more detailed information of their respective Programmes. 
See http://europa.eu.int/comm/employment_social/equal/index_en.html; 
http://europa.eu.int/comm/employment_social/incentive_measures/index_en.htm; 
http://europa.eu.int/comm/employment_social/soc-prot/soc-incl/ex_prog_en.htm; 
http://europa.eu.int/comm/employment_social/fundamental_rights/index_en.htm 

EN 

21 

   EN 

 
                                                 
the integration of migrants, on urban issues and access to housing by immigrants and ethnic 
minorities.  

Due  to  the  significant  impact  of  immigration  on  entrepreneurship  and  the  importance  of 
business creation by immigrants as a means to integration, the Entrepreneurship Action Plan45 
has  targeted  support  for  immigrant  entrepreneurs  as  one  of  its  key  actions  for  2004.  The 
action  aims  to  facilitate  exchange  of  good  practices  between  Member  States  in  accordance 
with the open method of co-ordination.  

With respect to specific instruments targeted towards immigrants the European Refugee Fund 
is the European Community’s main instrument supporting the implementation of a common 
asylum  policy.  In  2003,  Member  States  allocated  25%  of  their  appropriation  under  the 
European Refugee Fund to support the integration of refugees covering activities at national 
level in particular to provide social assistance in areas such as housing, means of subsistence 
and health care or to enable beneficiaries to adjust to the society of the Member State or to 
provide  for  themselves.  A  number  of  important  projects  have  been  implemented  aiming  at 
empowering  refugees  through  community-based  social  support,  family  support,  and  support 
for the maintenance of the native culture of refugees. Projects are also being implemented to 
promote  pathways  to  socio-economic  integration  through  language  teaching,  vocational 
orientation  and  training,  job  searches  and  job  creation.  In  February  2004,  the  Commission 
presented a proposal for the establishment of the second phase of the European Refugee Fund 
for the period 2005-2010. 

A  new  pilot  project  on  integration  (INTI)  was  launched  in  2003  with  a  view  to  specifically 
support  networks  and  the  transferral  of  information  and  good  practices  between  Member 
States, regional and local authorities and other stakeholders on policies for the integration of 
immigrants. Fourteen projects involving the establishment of networks, conferences, research 
and  the  development  of  innovative  approaches  have  been  selected  for  funding  and  are  now 
being implemented. 

In addition, the Council adopted in December 2003 a proposal from the Commission for the 
establishment  of  a  cooperation  programme  (ARENEAS)  with  third  countries  aiming  at 
providing specific and complementary assistance to them in order to support their efforts in 
better managing migratory flows in all their dimensions. It provides for a global envelope of € 
250 million for the period 2004-2008. 

45 

COM (2004) 70 final. 

EN 

22 

   EN