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MEMO/12/234
Brussels, 30 March 2012
Communication on the External Dimension of EU
Social Security Coordination and four proposals for
Council Decisions
On 30th March 2012, the European Commission put forward a package including a
policy Communication on the External Dimension of EU Social Security
Coordination, together with 4 proposals for Council Decisions on the EU position
concerning social security coordination with Albania, Montenegro, San Marino and
Turkey.
Social Security Coordination: what is it?
Social security systems are generally based on a territorial principle that means that
social security benefits are paid only on the territory of that state and only social
insurance contributions made in that state can be recognised for the payment of
benefits. Social security coordination rules are a system of rules designed to create
links between different national social security systems so as to minimise
disadvantages for persons who move between different countries and different social
security regimes. They deal with such issues as avoiding having to make double
social insurance payments in the case of persons who work in more than one
country; they also generally allow for a state pension acquired in one country to be
paid on the territory of another country. Equal treatment is usually part of a social
security coordination system.
Social security is not harmonised in the EU. Each state is responsible for its own
social security system. The EU therefore has its own internal regime of EU social
security coordination, which has been in existence since 1959. It is currently
contained in Regulations (EC) No 883/2004 and (EC) No 987/2009. For further
information, see: http://ec.europa.eu/social/main.jsp?langId=en&catId=849
How is social security currently dealt with for workers who move in
and out of the EU?
Social security coordination with countries outside the EU is dealt with by means of
bilateral social security agreements made between Member States and third
countries. Such agreements often contain provisions that allow a worker from a third
country to work in the EU country concerned but remain subject to the social security
legislation of the sending state for a limited period of time. In addition, they can cover
equal treatment in the system of the host state and payment of state pensions on the
territory of the other state. Older agreements sometimes deal with reciprocal
healthcare provision. Member States have only a limited number of such bilateral
agreements; the content of the agreement varies from country to country; and there
are very many third countries with whom no agreements exist.
The Communication on the External Dimension of EU social security
coordination: what does it aim to achieve?
The Communication makes the point that, although there is an internal system of EU
social security coordination rules, there is no real cooperation in respect of third
countries (other than in respect of the EEA countries and Switzerland). This creates
external "fragmentation", which causes barriers for businesses coming from third
countries and a lack of transparency as to what migrants' rights are, both for EU
workers working outside the EU and for migrants from third countries working in the
EU. The Communication therefore suggests a number of ideas to encourage
cooperation between the Member States in the field of social security coordination
with third countries.
What does the Communication propose?
The Communication proposes a two-pronged approach. It underlines the need for
better cooperation on national bilateral agreements and it promotes the development
of a common EU approach. In general terms, it emphasises the need – consistent
with the Europe 2020 strategy – for the EU to look outwards and to strengthen its
external profile on social security issues.
What is proposed as regards bilateral agreements?
The Communication sets out a range of common practical and legal issues that arise
for Member States in the application of their bilateral agreements. It makes the case
for more cooperation when concluding, reviewing and applying these agreements.
To facilitate this, it proposes a new forum at EU level for cooperation between
Member State experts who deal with such bilateral agreements.
How can the EU develop a common approach?
There is already a common EU approach to social security coordination contained in
provisions agreed in association agreements made between the EU, its Member
States and certain third countries. In 2010 the Council agreed on the EU position for
the implementation of the social security coordination provisions in relation to the
Association Agreements made with Algeria, Morocco, Tunisia, Croatia, the Former
Yugoslav Republic of Macedonia and Israel. The Communication proposes the
adoption of four more Council Decisions - so as to implement the social security
coordination provisions in agreements made with Turkey, Albania, Montenegro and
San Marino. These proposals for Council decisions to agree the EU position have
been adopted at the same time as the Communication.
What are Council Decisions on the EU position?
The proposals for the EU position are proposals that are based on obligations
contained in EU association agreements with the countries concerned (in the case of
San Marino it is based on a Customs and Cooperation Agreement). In each of the
agreements an undertaking was given to implement a set of limited social security
coordination rules between EU Member States and the third country concerned.
The first step toward the adoption of this set of rules is the adoption of the EU
position by the Council. After the EU position is agreed, the second step is to reach
agreement with each country on the adoption of a Decision by the relevant EU
Association Council with that country (in the case of San Marino, this is called the
Cooperation Committee). Decisions of these bodies are part of the EU legal acquis
and can be directly applied as part of national law.
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Does the Commission propose the same EU position in respect of all
countries?
Yes, the proposals are more or less identical. There is a small variation as regards
social security benefits covered: this arises from what was agreed in the Association
Agreement with the country concerned. This unified approach will facilitate an easier
application of the rules by social security administrators in the Member States.
Why has a proposal been made for Turkey – there is already an
existing Decision 3/80 on social security coordination with Turkey?
The proposal for the EU position concerning social security coordination with Turkey
is intended to replace and modernise the existing Decision 3/80 of the EEC-Turkey
Association Council on social security coordination. Decision 3/80 has never been
legislatively implemented, despite having been given partial effect as a result of
judgments of the Court of Justice.
The new decision proposed aims to bring legal certainty as regards the pension
rights of Turkish workers, who have worked in the EU and then return to Turkey. It
also adds reciprocal rights for EU workers, who have worked in Turkey.
Is the approach to Turkey different to that taken to the other
countries?
No, the position proposed vis-à-vis Turkey is more or less identical to that proposed
for the other countries that are part of the same package. It also mirrors the position
adopted by the Council in October 2010 in respect of social security coordination
with Algeria, Croatia, Israel, Morocco, the former Yugoslav Republic of Macedonia
and Tunisia.
The Communication also proposes EU social security agreements:
what are these?
The Communication proposes that Member States consider whether they wish to act
jointly on social security coordination with selected third countries, mainly with the
EU’s strategic partners, in particular those with whom there are significant
movements of labour. The overall aim of such agreements would be to promote a
coherent EU approach vis-à-vis the third country concerned.
The agreement would, in contrast to association agreements, focus solely on social
security issues.
On what issues could such an EU social security agreement be made?
The idea is to have a common approach to social security coordination with a third
country. The agreement could cover the payment of social security contributions
(both in the EU and in the third country concerned) and also the payment of state
pensions outside of the territory of the paying state.
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