12/12/2007: The current major problem of undeclared work has been appealed by Marie Panayotopoulos-Cassiotou in her Question to the Commission: "What percentage of work is undeclared, according to the Commission’s calculations, and what is its short and long-term impact on competitiveness per EU Member State?". In the range of a greater deal of discussion about flexicurity and flexible forms of employment, Marie Panayotopoulos-Cassiotou has queried the Commission on the topic of the relationship between flexible forms of employment and partly-declared work.
The Commission, in its Answer, was unable to give full particulars and underlined that: "undeclared work in its nature is difficult to be specified correctly. Statistics and estimations by the Commission, in 2004, show that undeclared work has many varying forms in the EU Member States. It has been estimated that in South/South-east Europe, the percentage of undeclared work is about 20% of the GDP. Undeclared work has general and negative effects for competitiveness in the European Union, twists the business competition and leads to social dumping. In addition, there are many contact points to insufficient situations of employment, inadequate social net and less opportunities for further advanced vocational training of the employees." Furthermore, the Commission underlined that there is no balance between tax defraudation, social contribution defraudation, and the costs of the enactment of legislation, as demanded by the European Union, and the profit of both the employers and the employees.
The imposition of sanctions on employers who employ natives of third countries who are illegally resident is insufficient according to Marie Panayotopoulos-Cassiotou. Consequently, Mrs Panayotopoulos-Cassiotou wants to be informed about further measures that the Commission wants to take. Commissioner Špidla referred to the declarations of the Commission "Enactment of mutual policy of flexicurity" and "Assistance to abatement of undeclared work." The work relations for the employee are very insecure and undeclared work terminates the employment market. Furthermore, the procedure of abatement of undeclared work is being described in detail to create less attractive conditions for this type of employment. It is also planned to standardise legislation in this sector to expedite the proceedings, to simplify and to promote the cooperation of the Member States.
Marie Panayotopoulos-Cassiotou, as Spokeswoman on the European Parliament Resolution on promoting decent work for all, underlined her satisfaction at the Commission's statement to intend to propose a European and international cooperation in the field of supervisory systems (work inspections) and the enactment of legislation.
The Commission, in its Answer, was unable to give full particulars and underlined that: "undeclared work in its nature is difficult to be specified correctly. Statistics and estimations by the Commission, in 2004, show that undeclared work has many varying forms in the EU Member States. It has been estimated that in South/South-east Europe, the percentage of undeclared work is about 20% of the GDP. Undeclared work has general and negative effects for competitiveness in the European Union, twists the business competition and leads to social dumping. In addition, there are many contact points to insufficient situations of employment, inadequate social net and less opportunities for further advanced vocational training of the employees." Furthermore, the Commission underlined that there is no balance between tax defraudation, social contribution defraudation, and the costs of the enactment of legislation, as demanded by the European Union, and the profit of both the employers and the employees.
The imposition of sanctions on employers who employ natives of third countries who are illegally resident is insufficient according to Marie Panayotopoulos-Cassiotou. Consequently, Mrs Panayotopoulos-Cassiotou wants to be informed about further measures that the Commission wants to take. Commissioner Špidla referred to the declarations of the Commission "Enactment of mutual policy of flexicurity" and "Assistance to abatement of undeclared work." The work relations for the employee are very insecure and undeclared work terminates the employment market. Furthermore, the procedure of abatement of undeclared work is being described in detail to create less attractive conditions for this type of employment. It is also planned to standardise legislation in this sector to expedite the proceedings, to simplify and to promote the cooperation of the Member States.
Marie Panayotopoulos-Cassiotou, as Spokeswoman on the European Parliament Resolution on promoting decent work for all, underlined her satisfaction at the Commission's statement to intend to propose a European and international cooperation in the field of supervisory systems (work inspections) and the enactment of legislation.
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