The EU will step up its efforts to tackle undeclared work which represents around 18% of the wealth produced in Europe. Today, the European Parliament gave its green light to the establishment of a European platform to enhance cooperation at EU level for both prevention and deterrence of undeclared work as well as encouraging transforming it into declared work.
S&D Euro MP and European Parliament negotiator, Georgi Pirinski, said:
"Today the EU has taken an important first step to deal with the multiple challenges of undeclared work. The Socialists and Democrats were at the forefront of creating a European Platform with the aim of adding value in tackling these challenges. It will operate on the basis of experience and best practice exchange, bringing together a wide range of stakeholders, including representatives of member states and cross-industry social partners.
"The phenomenon is wide spread in some sectors; such as the construction industry, agriculture, household and care services, industrial cleaning, hotels, restaurants and catering; and it affects millions of workers. Workers in undeclared work are exploited, enduring hazardous working conditions and lower wages and are often deprived of social insurance and social rights. Besides, such work leads to serious market disruption, with companies that observe the rules having to endure severely unfair competition from enterprises that practice it. And, last but not least, it deprives tax authorities and social security systems of substantial revenue and contributions due. Thus there is a clear and urgent need to enhance cooperation at Union level to comprehensively tackle the multiple challenges that undeclared work generates."
