EU foreign Ministers have failed to resolve a row over the free movement of workers following the admission of new member-states from central and Eastern Europe.
Germany and Austria refused to drop their demand for a seven-year delay before citizens of the new member-states would be allowed to work elsewhere in the EU. But Spain said it would support the measure only in return for guarantees that it would still receive regional aid following EU enlargement.
The Swedish Foreign Minister, Ms Anna Lindh, said that most countries supported a compromise proposed by her country, which holds the EU presidency. This would impose a seven-year delay but would allow a review of the measure after two and five years. "We are very close to an agreement. We agreed that there is no link to other countries' concerns," she said.
Under pressure from the EU Enlargement Commissioner, Mr Guenther Verheugen, Germany and Austria dropped a demand for a delay to the free movement of some services after enlargement. But Spain's Foreign Minister, Mr Josep Pique, said he would not budge on the aid guarantee.
Germany and Austria fear that enlargement will unleash a wave of migration and that an influx of cheap labour would create social problems. The Commission predicts that 3.9 million people could move from East to West in the first 30 years after the first 10 new member-states are admitted. Perhaps 2.5 million would go to Germany and half a million to Austria.
Spain is worried that the admission of poorer countries could mean the end of funding it now receives.
