European Union governments reached a compromise deal on today that could curb workers from new EU members from seeking jobs in existing member states for up to seven years after enlargement.
We have a common position we can present to candidate countries, a spokesman for Sweden, current head of the rotating EU presidency, said.
Agreement on a common EU position on free movement of workers was considered crucial to avoid delaying negotiations with a dozen countries which want to join the EU.
Sweden has made enlargement preparations a priority of its six-month presidency and pushed hard for an agreement on labour to prevent the subject hijacking a June summit in Gothenburg.
The agreement was reached just before negotiations in Brussels on Friday between the EU and the six leading candidates for membership - Poland, Czech Republic, Hungary, Estonia, Slovenia and Cyprus.
The candidate countries, mostly from ex-communist eastern and central Europe, have asked for immediate freedom of movement for workers. But Germany and Austria, fearing a flood of cheap labour from eastern Europe after enlargement, pushed for a long transition period.
A row among EU member states broke out when Spain, the biggest beneficiary of EU development aid, demanded guarantees of continued EU support even after poorer eastern European countries become members.
Today's agreement was made possible after Spain lifted its objections, saying it had received assurances that its bid to continue receiving EU economic aid for its impoverished regions would be considered by member states.
Portuguese representatives - who had backed the Spanish position - maintained their reservations at Wednesday's meeting but dropped them soon afterwards following consultations with Lisbon, EU sources said.
Under the compromise, there would be an initial two-year ban on the free movement of workers from new to all existing EU member states, after which individual member states could bar workers from new members for two more years.