This is how Brussels wants to reverse the problem that three out of four SMEs have

BrusselsSmall and medium-sized enterprises represent 99% of the European business fabric. And three out of four claim that they have difficulties finding workers with the specific skills they need. For Brussels, part of the problem is that, despite decades of integration, the European labor market remains fragmented by administrative borders.

A Spanish company that needs, for example, specialized carpenters cannot turn to the European labor market with the same ease with which it searches for suppliers or clients in another member state. Among the obstacles it faces are the recognition of professional qualifications, the bureaucracy to certify where the worker contributes, and what social coverage they have. And to this are added the differences between the various national social security and pension systems.

To try to eliminate these barriers, the European Commission presented this Tuesday a legislative package that makes it easier for companies to "hire the talent they need with less paperwork and fewer delays," as explained by Roxana Mînzatu, Executive Vice-President for People, Skills and Preparedness. The initiative especially affects the 14 million Europeans who live in another European Union state, and could encourage the mobility of the 18% of the community population who claim they would like to work abroad.

One of the pillars of the proposal is the creation of the European Social Security Pass, which will allow requesting and receiving documents related to social protection online. The objective is not to unify the contribution systems of the member states, but to make it easier for a worker to certify digitally and immediately where they contribute and what coverage they have, regardless of the EU country they are in.

Thus, the European Health Insurance Card will be issued within a maximum of 24 hours and, together with documents such as the A1—which certifies the social security legislation applicable to posted workers—, it may be integrated into a type of digital wallet. This will allow the worker to demonstrate from their mobile phone, and before any European administration, what their coverage is. The commission expects this digital wallet to be available by the end of the year, and a period of three years is given to integrate the European Health Insurance Card into it.

Degree recognition

The other major breakthrough is the recognition of qualifications. All new degrees and diplomas (from secondary education to doctorates) will be issued free of charge in an approved digital format within the EU Digital Identity Wallet. Citizens who obtained their qualification before the regulation came into force will also be able to request a digital version.

A notable novelty has to do with degrees obtained outside the EU. For the first time, Brussels proposes that certain qualifications may be automatically recognized. The measure would affect programs from third countries that meet minimum requirements and have been previously evaluated by European bodies, in professions such as medicine, general nursing, dentistry, midwifery, veterinary medicine, pharmacy, or architecture.