The European Union Allows Unemployed to Transfer Benefits Abroad for Half a Year

The Hague: Noureddine Amrani

The maximum period for receiving unemployment benefits for someone seeking work in another European country has been doubled from three months to six months, according to a recent decision by the European Union's Consultative Committee on Migrant Workers. This decision follows ten years of negotiations that began in 2016 and required at least eighteen rounds of talks to reach an agreement among all EU member states. On several occasions, slim majorities successfully blocked previous attempts to reach an agreement, with the Netherlands consistently joining this obstructionist camp. The Dutch government feared that it would become more difficult for recipients of Dutch unemployment benefits (WW), which are relatively high compared to other European countries, to effectively integrate into the labor market if they were living abroad.

The most interesting aspect of the new regulations is that anyone who becomes unemployed and moves to another EU country is now permitted to move and receive unemployment benefits for six months instead of three. To prevent these individuals from suddenly losing their benefits upon relocation, the European Commission has established rules to further harmonize social security systems among member states.

The European Commission has also established rules to further harmonize social security systems among member states. Another part of the agreement concerns combating fraud and providing tax clarity. EU member states will now have to exchange information more quickly to prevent and detect errors or fraud related to benefits, such as scams or other forms of exploitation like the creation of shell companies (post office box companies).

Furthermore, greater tax clarity and ongoing coordination in the exchange of information relevant to the movement of citizens within the European Union have been achieved.

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