Significance
The EU is built around the 'four freedoms', which together form the core of the internal market. Economically, freedom of movement is meant to smooth out asymmetrical labour market shocks by allocating labour where it is needed most. In the past, intra-EU mobility has been relatively low and mostly reflected a widening welfare gap between older member states and those that joined after 2004. As a result, fears of 'welfare tourism' have risen, despite the fact that empirical evidence for it is scarce.
Impacts
The issue of welfare tourism will continue to dominate the debate.
Who is eligible for what welfare payments in other member states will, therefore, continue to occupy courts across Europe.
Because of the current refugee crisis, the rules on third-country nationals will come under scrutiny again.
Covid-19 Labour Market Shocks and Their Inequality Implications for Financial Wellbeing
