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Feasibility Study EURES Pannonia

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Feasibility Study EURES Pannonia Feasibility study for the creation of a EURES cross-border partnership covering the regions between Eastern Austria and Western Hungary covering Gy ır-Moson-Sopron, Vas and Zala counties, that is, the Western Transdanubia region in Hungary, and Burgenland province and certain territories of Lower Austria and Styria provinces in Austria Presented under the commission of the National Employment Service by Empirica Institute of Economic and Social Research Ltd, Sopron (9400 Sopron, Ver ı József út 1 / Tel: +36 99 514 504 / www.empirica.hu) in Cooperation by MKW GmbH, Munich Péter Csizmár Lívia Kovácsevics Andreas Woidich Tina Brochmann Anna Halász Sopron, February 2008 Feasibility study for the creation of a EURES cross-border partnership covering the regions between Eastern Austria and Western Hungary Table of Contents Page Executive summary 4 List of tables, figures and maps 5 List of abbreviations 6 1 Preface 8 2 Regional demarcation of the partnership 9 3 Labour market and economic structure 12 3.1 Population 12 3.2 Higher education training 17 3.3 Employment and economic structure 20 3.4 Incomes 27 3.5 Unemployment 29 3.6 Registered vacant jobs 35 3.7 Economic performance 38 3.8 Bilateral contacts between Hungary and Austria in external trade 43 3.9 The flow of capital, and the cross-border activities of enterprises 45 4 Flow of commuters and services 47 4.1 Free flow of the labour force 47 4.2 Commuters 49 4.3 Free flow of services and freedom of establishment 52 5 Necessity for the establishment of a EURES Pannonia cross-border Partnership 53 5.1 Existing structures of cross-border co-operation 53 5.2 Geographical parameters 57 5.2.1 Geographical parameters, transport infrastructure 57 5.2.2 Obstacles to mobility 61 5.2.3 Cross-border synergic effects 64 5.2.4 Labour market deficiencies (Training deficit and surplus) 65 5.2.5 The Austrian–Hungarian cross-border territory in European comparison 5.3 Results of the questionnaire survey 67 EMPIRICA, February 2008 2 Feasibility study for the creation of a EURES cross-border partnership covering the regions between Eastern Austria and Western Hungary 5.4 Summary 69 5.5 Project ideas before the full opening of the labour market 70 6 Practical implementation 72 6.1 Fundamental considerations 72 6.2 Regions and partner organisations participating 73 6.3 Significance and length of validity of the Framework Agreement 74 6.4 Organs of the EURES partnership 75 6.4.1 The Steering Committee 75 6.4.1.1 Definition and tasks of the Steering Committee 75 6.4.1.2 Members of the Steering Committee 75 6.4.1.3 Mandate and major data of the Chairperson 78 6.4.1.4 Decision-making and voting procedures 78 6.4.2 Working groups 79 6.4.3 Co-ordination 79 6.4.4 Budgetary liability 82 6.5 Financing and budget 83 6.6 EURES advisers 85 6.7 Co-operation with other EURES-T structures 87 6.8 Time schedule 88 6.9 Summary 90 Attachement EMPIRICA, February 2008 3 Feasibility study for the creation of a EURES cross-border partnership covering the regions between Eastern Austria and Western Hungary Executive Summary According to preliminary analyses (Chapters 1 to 5.2), it is clear that the establishment of an EURES-T partnership in the Austrian-Hungarian border region is reasonable and justified, and the establishment may be a very useful initiative for the future for the stakeholders of the labour markets of both countries. • As regards its territory, the size of the population and the number of commuters, the planned extension of the partnership corresponds to the average sizes of already existing partnerships. • The region has extensive cross-border economic and trade relationships. • The economic activity of enterprises is strong, and their cross-border relation system is well-established, and although the level of cooperation is not yet appropriate, initiatives have been launched to accelerate this. • Despite the restriction of the free movement of the labour force, a higher level of cross-border mobility is to be perceived as regards employment compared to already operational partnerships. • Cross-border transport infrastructure, although with some deficiencies, does not have basic constraints against cross-border employment. The infrastructure expands continuously, and its modernisation is on the agenda in both countries. • The major factor preventing mobility in the region is the restriction of the free movement of the labour force which, following facilitation planned for 2009, shall be fully withdrawn by 01.05.2011 at the latest. Despite the retained restrictions, it is probable that the annual Hungarian quota granted employment permits in Austria shall increase continuously and it shall generate an ever-growing demand for the information provision activities of the EURES-T partnership to be established in the future. • In the region, there are active demands as regards counselling and information provision on the cross-border labour market. • Now there are a lot of already existing cross-border organisational or project structures in the region which supplements and promotes the operation of the EURES-T partnership. EMPIRICA, February 2008 4 Feasibility study for the creation of a EURES cross-border partnership covering the regions between Eastern Austria and Western Hungary List of tables, figures and maps Page Tables Table 1 Regional division of the study region 10 Table 2 Size of the study area 11 Table 3 Major demographic and labour market data of the study area 11 Table 4 Population trends in the study area 12 Table 5 The composition of the population in the study area 15 Table 6 Development of the number of non Hungarian citizens, 1994 – 2006 16 Table 7 Universities and colleges at the Austrian side of the study area according to the numbers of students and majors 18 Table 8 Universities and colleges at the Hungarian side of the study area according to the numbers of students and majors 19 Table 9 The development of the number of the employed by workplace in the study area between 2001 and 2006 20 Table 10 Employment rate (15-64 years), % 25 Table 11 Monthly net salaries (in EUR) – Processing industry (single individual without a child, 100% of the AW* salary) 27 Table 12 Available income per capita of households as regards purchasing power parity (GDP-PPP) 27 Table 13 Costs of employment in processing industry (in EUR) 28 Table 14 Structural unemployment 2006 33 Table 15 The annual average of the number of monthly registered jobs 35 Table 16 Gross domestic product (GDP), current price, million EUR 38 Table 17 Per capita GDP-PPP value, in the proportion of EU27 average, % (EU-27=100) 40 Table 18 Division of gross added value (GAV) (prices in million EUR) in a economic sectors, % 41 Table 19 The external trade balance of Austria and Hungary between 2004 and 2006 43 Table 20 15 major trading partners of Austria 43 Table 21 Capital investments, 2001-2005 (million EUR) 45 Table 22 The number of workplaces generated by Austrian capital investment by target area (persons) 45 Table 23 The number of workplaces generated by foreign capital investment in Austria (persons) 46 Table 24 The trends in the quotas under the Commuters Agreement and the numbers of submitted applications, issued permits and certificates for exemption from authorisation 48 Table 25 Distance and travel time between major towns and cities (Car and train) 61 Table 26 The EURES-T Pannonia in European comparison 66 Table 27 Project proposals before the full opening of the labour market 70 Table 28 Distribution of seats on the Steering Committee 77 Table 29 Time schedule for the establishment of “EURES-T Pannonia Cross-border Partnership” 88 EMPIRICA, February 2008 5 Feasibility study for the creation of a EURES cross-border partnership covering the regions between Eastern Austria and Western Hungary Figures Figure 1 The number of the registered unemployed, average in 2001-2006 29 Figure 2 The seasonal changes of unemployment in 2005/2006 32 Figure 3 Trends of vacant jobs registered monthly between June 2006 and July 2007 36 Figure 4 The annual average between 2002 and 2006 of monthly registered jobs 36 Figure 5 Regional division of gross domestic product (current price, million EUR), % 39 Figure 6 The “filtering” effect of factors preventing mobility 62 Figure 7 Basic Organisational Structure of the „EURES-T Pannonia Cross-border Partnership” 76 Figure 8 Activity development and implementation within “EURES-T Pannonia 84 Cross-border Partnership” Maps Map 1 Regional demarcation of the partnership 9 Map 2 Population density in the study area, 2007 13 Map 3 The trend of the number of the inhabitants in the study area, 2002-2007 14 Map 4 Universities and colleges in the study area, 2007 17 Map 5 The development of the number of the employed between 2002 and 2006 21 Map 6 The number of the employed / population of working age by economic sectors 2004/2006 (annual average) 22 Map 7 The yearly average in 2006 of the unemployment rate 30 Map 8 The study of the traffic of Eastern border-crossings of Austria for target traffic 50 – commuters, individual travel (persons, 2005) Map 9 The study of the traffic of Eastern border-crossings of Austria for target traffic – commuters, public travel means (persons, 2005) 50 Map 10 Transport infrastructure of the study area (network of roads and railways) 59 Map 11 Accessibility of the Austrian border region (Austrian-Hungarian) (within 90 minutes) 60 EMPIRICA, February 2008 6 Feasibility study for the creation of a EURES cross-border partnership covering the regions between Eastern Austria and Western Hungary List of abbreviations EMPIRICA, February 2008 7 Feasibility study for the creation of a EURES cross-border partnership covering the regions between Eastern Austria and Western Hungary 1 Preface Hungary acceded to the European Union on 1 May.
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