Professor Hildegard Schneider
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Think in view of mobility and freedom of movement.
It is a difficult time to talk about European integration. The past year has indeed been tough for European integration. A majority of the British people voted against the EU. A majority who have spoken out against mobility in the EU, something that is of particular concern.
Last year during ITEM's conference we were reminded by Professor Verschueren that in 2018 the 100th anniversary of the end of World War I will be celebrated. A war which caused many Belgians to flee across the border to the Netherlands.
Looking back on the period in which Europe experienced two world wars, Europeans today have a special privilege to live in an era of peace and prosperity. Something which is too often taken for granted. One can therefore be particularly shocked by the recent developments surrounding the Brexit.
It is essential to act in order to achieve cross-border cooperation and mobility. If a decision is to be taken, it should be done in dubio pro mobilitate. Leave a choice, in case of doubt, to the advantage of mobility. We can only celebrate future anniversaries of the Maastricht Treaty if it is made clear to citizens that their lives through the right of mobility and the freedom of movement become easier and that the freedom of movement and mobility contributes to their peace and prosperity.
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ITEM's Cross border impact assessment 2016
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Cross-border employment: on paper it seems settled, but in practice it is difficult
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In spite of the negotiations about a Europe without borders held 25 years ago in Maastricht, there appear to be many obstacles to cross-border cooperation. Free movement of people, goods, services and capital are hampered by the way EU member states have implemented EU law, by the quality of national law and by its application in practice. This results from the 2016 cross-border impact assessment conducted by the Institute for Transnational and Euregional cross border cooperation and mobility / ITEM, that was presented at the yearly ITEM conference on the 28th of October.
In 2016, ITEM investigated primarily national topics that were the subject of much discussion along the Dutch border, such as the new tax treaty between the Netherlands and Germany or the national application of recognition of professional qualifications. As a result, much of the cross-border impact assessment 2016 pertains to legislation that has just come into effect, but the effects of which cannot yet be easily quantified. The new Tax treaty between Germany and the Netherlands is one of these, and accordingly its impact on the pensions of former mobile workers (including frontier workers) is not yet readily accessible.
Interestingly, ITEM research shows that legal bottlenecks are not at the root of the obstacles related to all issues. From the analysis of the recognition of professional qualifications, it appears that a number of practical matters can be a source of obstacles. The studied countries/federal states do not always provide the most advantageous solution for the cross-border worker. The fact that some authorities only accept documents in one language is an example of this, as well as the complexity that can exist in identifying the right competent authority and the uncertainty surrounding the amount of procedural costs. Multilingual documents and a more streamlined provision of information could contribute to a more flexible process for the recognition of professional qualifications.
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ITEM puts critical questions to governments
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ITEM investigates obstacles that occur with cross-border mobility. ITEM explores border issues both through PhD research and through case studies supplied by primary supporters such as border information points. ITEM is also responsible for raising governments’ awareness of certain obstacles and for putting critical questions to the legislator. The aim is to present specific directions for solutions based on research and expertise.
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DIGID-code for non-residents
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A DIGID-code is a crucial code when working or living in the Netherlands. With this code people in the Netherlands can log on to websites of several governmental institutions. By using the DIGID code for instance one’s online tax return can be submitted, child benefits can be applied for or one can see one’s pension capital overview online.
Non-residents are not able to ask for a DIGID-code (expect in case of AOW). This means e.g. that people who work in the Netherlands but live outside the Netherlands (those without a Dutch nationality, so for instance the Belgian and German cross border workers in the Netherlands) have no access to their pension capital overview or their pension fund via internet. They have to find other ways to know what their pension capital is.
This seems an unnecessary obstacle for cross border workers. ITEM asked the Dutch Ministry of Internal Affairs whether it would be possible for non-residents to get a DIGID-code since this is also an important code for non-residents who for instance work in the Netherlands. An unsatisfactory answer has been received from the Ministry, so ITEM continues to monitor this question.
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Website Dutch Tax Administration
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ITEM works on structural and fundamental issues within cross border labour mobility but sometimes also encounters incorrect online information for citizens. Cross border workers rely on information they find online at the official websites of governmental institutions. For those who work across borders or for those who’ve done this, finding correct information online about for instance taxes and social security is crucial.
On the website of the Dutch Tax Administration (Belastingdienst) one of ITEM’s contactpersons in practice discovered a calculation that was unclear (page: ‘Hoe wordt de premie Wlz of AWBZ berekend?’). The page contains information about the calculation of the social security contribution Wlz for the situation in which a resident of the Netherlands receives a German pension. This calculation is crucial for people who worked in Germany as cross border workers, but seems not to have been done correctly.
ITEM calculated the contributions and came up with a different outcome than the one the Tax Administration published on their website. ITEM contacted the Dutch Ministry of Finance, who promised to change the page as this indeed seemed to be unclear.
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The city of Aachen provides a so-called ‘family card’ which provides discounts on goods and services provided by a variety of companies, such as reduced fee for the use of the swimming pool or cheaper bakery goods or prescription glasses. The card is only available, however, for those parents who are registered as having their main place of residence in Aachen. It therefore excludes individuals who work in Aachen, but live elsewhere (e.g. in the Dutch town of Vaals).
ITEM is of the view that so-called ‘frontier workers’ (persons living e.g. in the Netherlands or Belgium, but working in Aachen) should also be eligible for this card. EU law provides that these workers have a right to equal treatment as regards ‘social advantages’ provided by the state of employment (here Germany/Aachen).
A letter has been sent to that effect to the municipality of Aachen with a view to raise this issue. The initial response by the authority has been to deny that there is a violation of EU law as there is no discrimination inherent in the rule (all persons registered in Aachen, regardless of nationality, are eligible). Nonetheless, ITEM regards the rule as ‘indirectly discriminatory’ (neutral in law, but in fact German nationals are more likely to fulfil the criterion), and will continue to argue the case. In case the municipality perseveres in its policy, ITEM might consider various follow-up actions.
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Berufsständische Versorgungseinrichtungen (Germany)
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When working in Germany some professionals in the so-called ‘freie Berufe’ like for instance doctors, veterinarians, pharmacists, architects use the ‘Berufsständische Versorgungseinrichtungen’ to build up their pension.
In Germany the contributions to the Berufsständische Versorgungseinrichtungen are comparable to the contributions to the Rentenversicherung for German tax law reasons. This means that in Germany, from a fiscal point of view they are treated equally compared to other professionals who build up their pension through the German Rentenversichering.
In the Netherlands however it seems that those who work in Germany in the so-called ‘freie Berufe’ and who build up their pension through Berufsständische Versorgungseinrichtungen, are not treated equally from a fiscal point of view.
ITEM asked the Dutch Ministry of Finance whether it would be possible for Dutch tax law reasons to compare the contributions to the contributions to the Rentenversicherung (see Decision 24 March 2014, no. DGB 2014/144M). The Ministry promised to examine the question.
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Feasibility study 'cross-border professional recognition card'
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ITEM's research on the topic recognition of professional qualifications, carried out as part of the 2016 cross-border impact assessment, shows that the studied countries/federal states do not always provide the most advantageous solution for the cross-border worker. The fact that some authorities only accept documents in one language is an example of this, as well as the complexity that can exist in identifying the right competent authority and the uncertainty surrounding the amount of procedural costs. Multilingual documents and a more streamlined provision of information could contribute to a more flexible process for the recognition of professional qualifications.
A more flexible and fast recognition process is particularly beneficial for frontier workers. Especially in border regions, employers will not always be prepared to wait a certain period of time until a frontier worker has obtained recognition when they also have the possibility to hire someone with a national qualification who does not need recognition. In order to come to a procedure that is suitable for the cross-border labour market there is a need for a different tool than the ones existing for the transnational labour market. Frontier workers need to be able to get to work quickly across the border. The benchmark should be, that it should be possible to start working across the border directly.
Therefore, ITEM is announcing its intention to carry out a feasibility study about creating a “cross-border professional recognition card”. The final “cross-border professional recognition card” would be a tool developed to speed up and facilitate recognition procedures, especially for border regions. The feasibility study will specifically investigate the possibilities for the Benelux and North Rhine-Westphalia (border) regions. This is especially interesting for Limburg, a province with relatively many foreign borders.
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ITEM has developed a Quick Scan in order to investigate and clarify whether new legislation and regulations (ex-ante) will have substantial effects on cross-border regions. The goal of this instrument is to estimate cross border effects ex ante.
The ITEM Quick Scan will enable local and/or regional governmental bodies to identify legislative proposals with substantive potential cross-border effects. A wide range of activities can be based upon these findings. Made available to external lobbyists/bodies, these finding can form a basis for lobbying activities by these parties. Findings can also lead to an inclusion of the subject at hand on the ITEM list of bottlenecks. Furthermore, findings may result in an in-depth analysis in the ITEM Cross-border Impact Assessment.
The legislation and regulations to which the ITEM Quick Scan can be applied will be decided along with the partners/governmental bodies concerned. Joint discussions will take place determining which type of analysis is preferable for experts, i.e. for those working in The Hague on behalf of the province, to follow up on the Quick Scan, and how ITEM can provide assistance.
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ITEM's annual conference - 28 October 2016
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‘Europe under pressure: effects for border regions - 25 years after the Maastricht Treaty.’
In 2016, 25 years after the negotiations about the European citizenship and a borderless Europe took place in Maastricht, the border within and outside the European Union still plays an important role. How can a free movement of persons, goods, services and capital be maintained if the political and humanitarian crisis is closing borders? How will particularly the border regions of the old Member States, where it is impossible to imagine life without free movement of persons, goods, services and capital, deal with the situation? How free is the cross-border citizen from a border region really when he wants to (go) work or supply a service just over the national border at less than 10 kilometres of his home? ITEM investigates cross-border cooperation and mobility. Particularly now!
One of ITEM’s research activities through which ITEM scientifically contributes to cross border mobility and cooperation is the development and annual execution of a cross border impact assessment.
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Institute for Transnational and Euregional cross border cooperation and Mobility / ITEM
E-mail: item@maastrichtuniversity.nl
Website: www.maastrichtuniversity.nl/item
Twitter: @ITEM_UM
Telephone: 0031 – 43 3883233
Address:
Bouillonstraat 1-3, 6211 LH Maastricht, The Netherlands
Avenue Céramique 50, 6221 KV Maastricht, The Netherlands (Tuesday and Thursday)
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