The spectre of the Bolkestein Directive is looming over the EU's labour framework, through legislation promoted by the European Commission to support and promote start-ups.
The point in question, as then, concerns the working conditions of the employees of a company, who are required to take into account the country of origin and not the country of work in which the company is located.
Country of origin
More specifically, this issue (28th regime EU int) was discussed at the two-day meeting of the Executive Committee of the ETUC (European Trade Union Confederation), which took place on Tuesday and Wednesday in Brussels.
Speaking to "F", the General Secretary of SEK Andreas Matsas described this proposal as very worrying, which, as he underlined, should be blocked before it is forwarded for voting, since it overturns the balances in the employment status of employees and contradicts the policy of extending collective agreements promoted by the EU itself.
In particular, as Mr. Matsas explained, the ETUC session discussed the new legislation promoted by the European Commission to support start-ups. However, among the proposals of this legislation, the part that concerns employees and provides for their working conditions is included.
As Mr. Matsas explained, in the event that a company is registered in Cyprus, but also operates in Spain, employees in Spain will be hired under employment conditions that apply in Cyprus and not in Spain. That is, the country of origin will be taken into account and not the country of work. This, Mr. Matsas noted, will upset the balances in the labour field, will create problems in collective agreements, as well as in the part of pensions.
Bolkestein Directive
Mr. Matsas noted that this legislation is quite reminiscent of the Bolkestein Directive, which had stirred up a storm of protests across Europe about 20 years ago. It is recalled that the opponents of the Bolkestein Directive had made a symbol of the Polish plumber, who worked in Brussels, but with a Polish salary.
Essentially, it symbolized the mass movement of cheap labour from the eastern to the more developed western countries of the EU. In essence, the Directive aimed to create a single, free market for services. Its purpose, as mentioned, was to facilitate the establishment of businesses and the provision of services between member states, reducing bureaucracy.
However, what had stirred up a storm of reactions across Europe and had been described by many as a "social setback", was the "controversial" provision that spoke of the "country of origin principle". It provided that businesses could operate in another country, applying the labour and tax rules of their own homeland.
Finally, the Directive received the approval of the European Parliament at the end of 2006, after the provision for the inclusion of workers, including posted workers, in the legislation of the country of origin had been waived.
The General Secretary of SEK told "F" that he will request a meeting with the President of the Republic as soon as possible, to inform him about the developments and at the same time to invite him to take a position on the legislation before the European Council. As Mr. Matsas said, the issue is currently under discussion in the European Parliament, with a timetable to be voted on either in 2026 or 2027.
Additional funds for employees
In addition, the EU's Multiannual Financial Framework 2028-2034 was discussed in the ETUC Executive Committee. As it turned out, the framework creates conditions for greater financial support for workers in Cyprus and especially for the unemployed and vulnerable groups of the population. In addition, it is possible to secure funds for the fight against poverty, support for social cohesion, as well as ensure that the resources to private companies will be interconnected with conditions related to the quality of work and collective bargaining.
However, in order to achieve this, a relevant request will have to be submitted by the government, along with possibly the policies that will be followed for the ways in which this money will be used. Therefore, in the letter of the General Secretary of SEK to the President of the Republic, the specific issue will be included for discussion, since it is a huge opportunity, which will give additional possibilities to support the employees.
Finally, the ETUC session discussed the need to promote the legislative framework for quality in employment, highlighting specific principles and priorities that will be directly linked to ensuring decent working conditions, job security and the overall quality of employment.
