Opinion: The case for the open door

This is a very topical issue in the UK, in light of the government's decision in 2004 to open its labor market to workers from Poland and other countries in Central Europe.

The UK government estimates officially that 600,000 migrants came from Central Europe following the opening of UK labor markets to incoming EU states in 2004. This figure includes self-employed labor, as well as 427,000 workers who were employed under the workers' registration scheme. More than half of those, over 250,000, came from Poland. As a consequence of this migration, the 'Polish plumber', the emblem of the influx of Central Europeans, has become part of the fabric of British life. Indeed, academics suggest that the influx of Poles to the UK in the last two years is the largest immigration of a national grouping in the UK's history.

Taking the plunge

In 2004 the UK was one of only three EU member states to take the plunge and open its labor markets immediately. Not only were there strong economic reasons, but also clear strategic reasons for the UK to make this move. It marked another step on the road of the reconciliation between Eastern and Western Europe, the shift from communism to capitalism.

Others have followed the UK's lead and given the green light to workers from Central Europe. Italy recently became the eighth member of the original 15 to lift all restrictions on workers from Central European states who joined the EU in 2004.

Positive impact

Despite the UK government's underestimation of the numbers in 2004, the impact has been positive, plugging gaps in the labor market, enhancing productivity and boosting economic growth. The Polish migrants have contributed to a variety of sectors of the economy.

The people who have come to the UK are typically hard workers and more than 80 percent of them are under 35. Contrary to the ugly caricature of the welfare-consuming immigrant, only 1.3 percent of the new migrants applied for unemployment benefits. Actually, many of them are working in the public sector, thus strengthening the National Health Service and other public services. Many of the Poles who have come to the UK have stayed for a relatively short period. Research shows that 30 percent of Polish migrants stay in the UK less than six months. As well as taking home increased pay packets, they also return to Poland with new skills, which benefit the Polish economy.

Catalyst for growth

The evidence that the Central European influx has acted as a catalyst for the UK's economic growth is strong. The accounting firm Grant Thornton recently estimated that their arrival has boosted economic growth by as much as one percent in 2005 and will probably do so again this year, thereby allowing Chancellor of the Exchequer Gordon Brown to meet his growth forecasts. Earlier this year the Item Club, an economic forecasting group sponsored by Ernst & Young, concluded that the migration had "proved remarkably positive for the economy, keeping interest rates 0.5 percent lower than they would otherwise have been."

Keep the faith

The UK is now faced with a decision on whether to open its labor markets to Bulgaria and Romania. In the debate so far, some business voices, notably leading business body the Confederation of British Industry, have called for a pause. However, business should stay faithful to the EU vision, first enunciated in the 1957 Treaty of Rome, of the free movement of workers. Business for New Europe urges the government to move ahead and continue its open-door policy when Bulgaria and Romania enter the EU in 2007. The UK has the opportunity to take the lead on this issue and uphold the importance of the European single market. Our recent experience with Polish and other Central European immigrants has been a happy one. The prospect of further migration that triggers economic growth is a cause for celebration, not cowardice.

Zaki Cooper is the director of Business for New Europe - www.bnegroup.org