How fears over Romanian and Bulgarian immigration have been exaggerated

A new survey shows that just one per cent of Romanians and four per cent of Bulgarians have begun to look for work in the UK and most will only migrate with a firm offer.

Few subjects have exercised Conservative MPs more in recent months than the subject of immigration from Romania and Bulgaria. Today, ahead of the end of transitional controls on the countries in 2014, parliament will debate an e-petition urging the government to stop "mass immigration from Bulgarian and Romanians" (it has received 145,364 signatures). 

But will there be any "mass immigration" to stop? A Newsnight survey of more than a thousand people in each country, the first to be conducted in recent years, suggests not. Asked to pick their first choice of EU country to move to in either 2013 or 2014, just 4.6 per cent of Romanians and 9.3 per cent of Bulgarians chose the UK. When asked specifically whether they would consider the UK as a destination, these numbers rose to 8.2 per cent for Romanians and 13.6 per cent for Bulgarians. But questioned on whether they have made concrete plans to move to UK, such as searching for accommodation and employment, these figures fall significantly. Just 1.2 per cent of Bulgarians and 0.4 of Romanians have begun to look accommodation and only four per cent of Bulgarians and one per cent of Romanians have started to look for work either with a recruitment agency or independently. In addition, of those looking for work, 65 per cent of Romanians and 60 per cent of Bulgarians said they would only migrate to the UK with a firm offer of employment. 

History shows that when assessing the likely number of migrants, it's important to distinguish between potential and actual plans. Past surveys have shown that as many as 50 per cent of Bulgarians would like to work abroad but in the last decade only around six per cent have actually left. 

It has long been clear that the removal of immigration controls on the countries is unlikely to lead to an influx comparable to that from the eastern European accession countries in 2004 (the Labour government forecast that just 13,000 a year would emigrate to the UK; the actual figure was 300,000). Romanians and Bulgarians have already had open access to the UK, if not its labour markets, since joining the EU in 2007, so many of those interested in living and working in the country have already come.

In addition, unlike in 2004, when only the UK, Ireland and Sweden opened their labour markets to new EU arrivals, in 2014, all EU member states will do so. As many, if not more, Romanians and Bulgarians will migrate to Italy and Spain, where large diaspora populations already exist, as to the UK. Finally, while the combined populations of the 2004 accession countries is around 70 million, Romania and Bulgaria have 29 million people between them, limiting the potential for mass immigration. But with UKIP likely to exploit the issue for all its worth in the local elections, the Tories are unlikely to dial down their rhetoric accordingly. 

A protester waves a Romanian 1989 Revolution flag during a protest at Piata Universitatii square. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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The Autumn Statement proved it – we need a real alternative to austerity, now

Theresa May’s Tories have missed their chance to rescue the British economy.

After six wasted years of failed Conservative austerity measures, Philip Hammond had the opportunity last month in the Autumn Statement to change course and put in place the economic policies that would deliver greater prosperity, and make sure it was fairly shared.

Instead, he chose to continue with cuts to public services and in-work benefits while failing to deliver the scale of investment needed to secure future prosperity. The sense of betrayal is palpable.

The headline figures are grim. An analysis by the Institute for Fiscal Studies shows that real wages will not recover their 2008 levels even after 2020. The Tories are overseeing a lost decade in earnings that is, in the words Paul Johnson, the director of the IFS, “dreadful” and unprecedented in modern British history.

Meanwhile, the Treasury’s own analysis shows the cuts falling hardest on the poorest 30 per cent of the population. The Office for Budget Responsibility has reported that it expects a £122bn worsening in the public finances over the next five years. Of this, less than half – £59bn – is due to the Tories’ shambolic handling of Brexit. Most of the rest is thanks to their mishandling of the domestic economy.

 

Time to invest

The Tories may think that those people who are “just about managing” are an electoral demographic, but for Labour they are our friends, neighbours and the people we represent. People in all walks of life needed something better from this government, but the Autumn Statement was a betrayal of the hopes that they tried to raise beforehand.

Because the Tories cut when they should have invested, we now have a fundamentally weak economy that is unprepared for the challenges of Brexit. Low investment has meant that instead of installing new machinery, or building the new infrastructure that would support productive high-wage jobs, we have an economy that is more and more dependent on low-productivity, low-paid work. Every hour worked in the US, Germany or France produces on average a third more than an hour of work here.

Labour has different priorities. We will deliver the necessary investment in infrastructure and research funding, and back it up with an industrial strategy that can sustain well-paid, secure jobs in the industries of the future such as renewables. We will fight for Britain’s continued tariff-free access to the single market. We will reverse the tax giveaways to the mega-rich and the giant companies, instead using the money to make sure the NHS and our education system are properly funded. In 2020 we will introduce a real living wage, expected to be £10 an hour, to make sure every job pays a wage you can actually live on. And we will rebuild and transform our economy so no one and no community is left behind.

 

May’s missing alternative

This week, the Bank of England governor, Mark Carney, gave an important speech in which he hit the proverbial nail on the head. He was completely right to point out that societies need to redistribute the gains from trade and technology, and to educate and empower their citizens. We are going through a lost decade of earnings growth, as Carney highlights, and the crisis of productivity will not be solved without major government investment, backed up by an industrial strategy that can deliver growth.

Labour in government is committed to tackling the challenges of rising inequality, low wage growth, and driving up Britain’s productivity growth. But it is becoming clearer each day since Theresa May became Prime Minister that she, like her predecessor, has no credible solutions to the challenges our economy faces.

 

Crisis in Italy

The Italian people have decisively rejected the changes to their constitution proposed by Prime Minister Matteo Renzi, with nearly 60 per cent voting No. The Italian economy has not grown for close to two decades. A succession of governments has attempted to introduce free-market policies, including slashing pensions and undermining rights at work, but these have had little impact.

Renzi wanted extra powers to push through more free-market reforms, but he has now resigned after encountering opposition from across the Italian political spectrum. The absence of growth has left Italian banks with €360bn of loans that are not being repaid. Usually, these debts would be written off, but Italian banks lack the reserves to be able to absorb the losses. They need outside assistance to survive.

 

Bail in or bail out

The oldest bank in the world, Monte dei Paschi di Siena, needs €5bn before the end of the year if it is to avoid collapse. Renzi had arranged a financing deal but this is now under threat. Under new EU rules, governments are not allowed to bail out banks, like in the 2008 crisis. This is intended to protect taxpayers. Instead, bank investors are supposed to take a loss through a “bail-in”.

Unusually, however, Italian bank investors are not only big financial institutions such as insurance companies, but ordinary households. One-third of all Italian bank bonds are held by households, so a bail-in would hit them hard. And should Italy’s banks fail, the danger is that investors will pull money out of banks across Europe, causing further failures. British banks have been reducing their investments in Italy, but concerned UK regulators have asked recently for details of their exposure.

John McDonnell is the shadow chancellor


John McDonnell is Labour MP for Hayes and Harlington and has been shadow chancellor since September 2015. 

This article first appeared in the 08 December 2016 issue of the New Statesman, Brexit to Trump