Two EU countries where hundreds of thousands of Bulgarians earn their living, both legally and illegally, have decided to lift all labour restrictions on Bulgarians for the first time since the country's accession in 2007. Unfortunately, the news that as of January 1 2009 Bulgarians can freely work in Spain and Greece did not cause much, if any, rejoicing of the kind one might have expected two years ago when the bans were first imposed.

The reason for the subdued reaction was the same as that which prompted the Spanish and Greek governments to lift the restrictions in the first place: the ongoing financial crisis. According to local media the Spanish cabinet concluded that letting Bulgarians work freely in Spain would not affect the country's labour market. The credit crunch has made many Bulgarian expats in Spain return home. And the tendency, according to the Spanish government, was for fewer and fewer Bulgarian workers to come to Spain.

The Spanish government's conclusions were supported by TV reports of Bulgarian expats returning to Bulgaria for the recent Christmas holidays.

One such report by private Bulgarian national broadcaster bTV on January 3  showed people arriving back at Sofia's central bus station. Returnees said they would not continue working in Spain because the 1000 euro monthly pay was not worth having to work as workers in a foreign land. Interviewees said that rising prices in Spain had made it difficult for them to survive and send money home as they used to. 

Spain's decision can be taken as solid proof of the changing attitude of Bulgarians living and working abroad. For the past 19 years Spain has been one of the main destinations for Bulgarian expats who have mostly worked in the construction, tourism and transport sectors. 

The returning expats' comments also showed that, although prices in Bulgaria have risen in line with the rest of Europe, the country is still considered relatively cheap. A good example in this respect is the two-year collective labour agreement signed between Bulgarian employers and trade unions on December 30. It said that highly skilled construction workers would earn a minimum of 540 leva (276 euro), while supervisors would earn no less than 770 leva (393 euro) a month. Compared to the 1000 euro a month figure, cited by returning workers as insufficient to make them stay in Spain, these may seem low figures but it shows where Bulgaria rates among EU members.   

The other traditionally attractive destination for Bulgarians working abroad, Greece, also shared Spain's motives for lifting the ban on Bulgarians. Perhaps another reason was that the measure never stopped many Bulgarians from working there illegally. By lifting the ban Greece has decided to encourage them to register as legitimate workers. The scale of the Bulgarian presence in the Greek economy was seen in the tragic incident involving Bulgarian Kostadinka Kouneva, one of the leaders of the Greek union of cleaners and domestic servants. She was brutally attacked on December 23 by two assailants who splashed sulphuric acid in her face and is currently recovering in hospital. Greek media claimed the attack was linked to Kouneva's activity as a union leader fighting for better working conditions such as shorter working days.   

Denmark also joined Greece and Spain in lifting its ban on Bulgarians. But, unlike the other two cases, the country has never been anything other than a favourite studying destination for Bulgarian students. The end of the year, however, showed that not all of the 15 EU countries that introduced labour restrictions on Bulgarians in 2007 were willing to lift them.

Ireland, the UK, Germany and Austria recently confirmed they will retain labour market restrictions for Bulgarians despite contrary recommendations from the European Commission. This showed the differing approaches towards foreign labour. Unlike Spain, Ireland saw the economic downturn as the reason for extending the current two-year ban on Bulgarians working in Ireland. Still Bulgarians' permit applications would be given preference over those from non-European economic area states but the "considerable challenges" raised by the global economic downturn, Ireland's minister of state for labour affairs Billy Kelleher said, was one of the main factors behind the government's decision.

According to the Irish Times the Irish government has also took into account the views of local trade unions and employer groups, as well as other EU member states. In this respect Bulgarian government had lobbied to have the restrictions lifted, and argued that they were discriminatory and treated them as second-class EU members.

Working in this respect Bulgaria's Economy and Energy Minister Petar Dimitrov has recently said that unemployment levels in Bulgaria have not yet surpassed six per cent, which is one of the lowest levels in the EU.

However according to Deputy Social and Labour Affairs Minister Dimitar Dimitrov, the Bulgarian Government anticipates possible unemployment levels of up to 7.4 per cent later this year.

Dimitrov said that the National Employment Action Plan, due to be approved by the end of January 2009, had set some significant goals. These included maintaining an average employment level for the 15-64 age group of 64 per cent and an unemployment level of 7.4 per cent. The plan also aims to create various programmes and steps through which the labour market could be stabilised. Some of these include securing employment for 84 000 people and providing training for 60 000 more, Dimitrov said. The Bulgarian Government has pledged to release assistance to companies most affected by the global financial crunch in a bid to maintain productivity and keep qualified workers in the country by stemming the possibility of losing them to foreign companies abroad.