Sweden to keep out workers from new EU states

SWEDEN: The Swedish government has changed its mind on welcoming workers from new EU states, saying it planned to keep them …

SWEDEN: The Swedish government has changed its mind on welcoming workers from new EU states, saying it planned to keep them out for fear its welfare system might collapse if the influx is unrestricted.

Prime Minister Mr Goran Persson signalled a policy U-turn which aligns the Scandinavian country, famous for its generous welfare benefits, with Baltic neighbours Germany, Denmark and Finland. EU newcomer Poland said Sweden was going back on its word.

All existing member states except Ireland and Britain will impose some limits.

The 15-strong EU will admit 10 new members - eight of them far less wealthy ex-communist states from central and eastern Europe - on May 1st. A recent Nordic Council report envisaged an up to five-fold increase in the number of people from EU newcomers Poland, Estonia, Latvia and Lithuania crossing the Baltic to look for work in Sweden, Denmark, Finland and EU outsider Norway.

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"We would be naive if we didn't see the risks if we were to be the only country welcoming people from East Europe to work for peanuts and giving them access to our social benefits," Mr Persson told reporters.

"It is very easy to foresee a situation where very many will easily obtain work permits and then, once inside our country, have access to the entire social security safety net," he said. "I expect enormous problems unless we protect ourselves."

After winning elections in 2002, Mr Persson had said clearly that Sweden would not limit access for workers from new EU members. But the Swedish budget fell into deficit in 2003 for the first time since 1997. Mr Persson, whose centre-left Social Democratic Party has held office for the past 10 years, is also under pressure from political opponents who question Sweden's open-door asylum policy. - (Reuters)