Coordination of social security systems (Regulation)
The EU Commission wants to change the obligations of the social insurance systems to provide benefits for EU citizens residing in other EU countries. Thus rights acquired in various different Member States can be exported. cep welcomes the fact that payment of unemployment benefit for a period of six months means an unemployed person can spend longer looking for work in another EU country.
Thus mismatches between the supply of and demand for labour can be reduced more easily. The ability to link social benefits for job seekers, from other EU countries, to a right of residence, means they will generally only have a right to claim this benefit when they have been employed and subject to social insurance contributions for a lengthy period, and have thereby acquired rights. In cep’s view, that is justifiable because these benefits are financed by deducting taxes and contributions from the active economic operators in the respective Member State.