Austria and Germany have concerns over the long-term effects of incorporating the new Eastern European states into the EU.  The Associated Press reports that these nations worry that the unskilled labor market will be overwhelmed by workers from the new member states who will work for less than current laborers.  According to Austria’s Federal Economic Chamber, many new workers are by-passing regulations meant to protect its labor market by claiming to be self-employed, what Austrians are calling “fake firms.” These one-person companies label themselves subcontractors and work mostly at construction sites as cheap employees. 

These fake firms are feared to be detrimental to the labor markets of more developed members of the EU because the current labor market cannot compete with the new workers entering the market for wages much reduced and without paying taxes or for insurance.  Current workers simply cannot compete with the depressed wages and governments fear a loss of tax money.  An estimated 6,000 to 7,000 workers from the new EU members are employed by fake firms in Austria only.  The Austrian Labor Ministry has been investigating reported cases and has doubled its raids on suspect construction sites.  Companies caught hiring so-called fake firms are required to pay the taxes and social fees that should have been paid to the employees under normal circumstances, in addition to a fine.  The workers are not punished.  While entrepreneurs are encouraged in Austria, officials would like to see a fair and competitive labor market and do not want to become entrapped in a fear of a larger EU.

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The Kathimerini recently reported that Greece is currently considering launching 12 satellites to monitor its borders.  The plan is a possibility, although factors such as cost and development are being taken into consideration.  The satellites would orbit at a much closer distance to the earth than other satellites, and would be smaller and less expensive. In addition to monitoring for illegal border crossing, the satellites will also monitor for the construction of illegal buildings that do not have the necessary permits. Every year thousands of immigrants cross into Greece as a means to move on to other countries in Western Europe, and this plan is aimed at lowering that number. The exact cost of this proposed program is unknown, but it is believed that the European Union will be able to provide a portion of the cost.