The European Parliament today adopted by a large majority a report on stepping up the fight against undeclared work. EPP-ED Shadow Rapporteur Rumiana Jeleva MEP highlighted how badly undeclared labour affects the financing and distribution of social security schemes because of tax evasion.

Jeleva said: "I call upon the rest of the Member States to extend the freedom of movement of workers for citizens from the new Member States to all 27 countries, by abolishing transitional restrictions. The EPP-ED Group knows how closely related the fight against undeclared work and illegal immigration are. I am convinced that tax incentives for SMEs and job creation should be
combined with strengthening social systems."

MEPs are calling on the Commission to frame policies to prevent and regulate undeclared work with the full involvement of all stakeholders by referring to the most affected sectors, such as the hotel and catering industry, farming, domestic services and the construction industry. It is alarming that undeclared work today reaches 20% of the GDP of some countries and even more in others.