Sweden has joined Ireland and Britain in opening its labour market to new EU member citizens
from May 1 after parliament today rejected a government proposal for a two-year transition period.
Swedish deputies voted 182 to 137 with four abstentions to reject the proposal under which Poles, Estonians, Latvians, Lithuanians, Czechs, Hungarians, Slovenians and Slovaks would for have to apply for a permit to come to Sweden to work.
Free movement of labour is one of the cornerstones of the European Union, which will expand by 10 new countries to 25 member states on May 1.
But apart from Ireland, Britain, and now Sweden, all other current EU members have imposed restrictions on the potential inflow of workers from eastern Europe, fearing their labour markets and welfare systems could be put under pressure.
The vote is another domestic policy setback for the minority Social Democratic government of Prime Minister Goran Persson, after Swedes decisively rejected the EU single currency advocated by Persson in a referendum last September.
The prime minister had initially been against a transition period for free labour movement for the new member states but changed his position in January after most other current EU members imposed such restrictions.
Persson has been arguing Sweden needs a transition period because eastern European workers could take advantage of the country's generous welfare policies, which are already under pressure because slower economic growth in recent years has diminished tax inflows.
The Swedish Migration Board does not expect a strong inflow of foreigners and the business community says Sweden needs more workers to generate tax and pension contributions to support the welfare system in coming years.