91997E2470

WRITTEN QUESTION E-2470/97 by Freddy Blak (PSE) to the Commission (16 July 1997)

Subject: Free movement of labour

Has the EU, in connection with the introduction of the free movement of labour, considered helping the Member States by drawing up a set of rules guaranteeing effective and mutual exchanges of information on periods of employment and incomes with a view to preventing fraud with social benefits including unemployment benefits? How will the Commission guarantee taxation either in the country in which the work is performed or in the country in which the wage earner has his permanent residence?

Answer given by Mr Flynn on behalf of the Commission (15 September 1997)

Article 51 of the EC Treaty requires the Council to adopt such measures in the field of social security as are necessary to provide freedom of movement for workers.

Within this framework ((Council Regulation (EEC) No 1408/71 of 14June 1971 on the application of social security schemes to employed persons, to self-employed persons and to members of their families moving within the Community (OJ L 149, 5.7.1971), Articles 81 and 85 of Council Regulation (EEC) No 574/72 of 21 March 1972 laying down the procedure for implementing Regulation (EEC) No 1408/71 (OJ L 4, 27.3.1972), more specifically Articles 2, 50 cf. 117, as most recently amended by Regulation (EC) No 1290/97 of 27June 1997 (OJ L 176, 4.7.1997). )), the Commission and the Administrative Commission on Social Security for Migrant Workers have developed the Telematics in Social Security (TESS) programme, the main objective of which is to speed up the granting and calculation of social benefits for migrant workers.

The information necessary to establish entitlement to social benefits and to calculate the amounts due are exchanged between the competent institutions of the Member States using standardised forms. The TESS programme projects will allow exchanges of information on paper to be replaced by telematic exchanges, thanks in particular to the development of common standards for the identification of insured persons, identification of the competent institution, and periods of insurance completed in another Member State. The first telematic exchanges have taken place among eight Member States under a pilot project for the exchange of data in the pensions sector. The TESS programme will not be extended to the unemployment sector until the results of the current projects have been assessed. The rapid and efficient application of national and Community legislation in the field of social security for migrant workers is one of the objectives of the TESS programme. The outcome will be that telematic exchanges of data between competent institutions will allow more effective monitoring of the granting of social benefits.