Nick Clegg: EU reforms reflect changed realities

It’s a cornerstone of European integration; a right currently enjoyed by around one and a half million British citizens who live on the other side of the Channel.

It is necessary in order to be part of the world’s biggest Single Market where goods and people can flow between nations. Those who wish to undo it should be careful what they wish for: the blow to UK prosperity would be immense.

But the way freedom of movement works should change as Europe changes.

The EU is a very different creature to when freedom of movement was first conceived – when the then European Community was 15 countries of similar sizes and with similar economies. It is now a 28-member bloc, with huge wealth discrepancies across its members.

It is only right – and I say this as a pro-European – that we reform freedom of movement to reflect these realities. It is a right to work. It was never intended as an automatic right to claim benefits, but over time, the distinction has been blurred. For that reason the coalition has taken the unprecedented action to restrict the access to benefits granted to European nationals.

But I also believe that, when the EU enlarges in the future, we’ll need to be stricter and clearer on the transition controls we apply to new member states – the time between a country joining the EU and its people being able to move here.

In 2004, Labour said up to 13,000 people from countries like Poland and Hungary would come here every year. The real figure was around 170,000.

When Romania and Bulgaria joined, Labour said no one from those countries would arrive ahead of the transition controls being lifted at the beginning of this year. Yet 60,000 Romanians and Bulgarians were already working here through a loophole for anyone who registered as self-employed.

Is it any wonder – when people have been repeatedly told one thing only to then see another – that so many have lost faith in the ability of govenment to manage the flow of migrants from new EU states?

The hidden carve out for the self-employed was meant to allow in entrepreneurs who wouldn’t fill positions that could otherwise be taken by British nationals and who would actually create jobs instead.

The reality was that Romanians and Bulgarians were taking low-paid jobs but registering as self-employed. They gave up their rights – no sick pay, no leave. Their employers didn’t have to pay National Insurance for them. British workers in industries like food and agriculture felt they couldn’t compete. And yet again the reassurances that had been provided to the British people were shown to be false.

Any transition controls for any new member state joining in the future need to be acceptable to the British people and do exactly what they say on the tin.

To that end I can tell you that, whenever the EU enlarges in the future, I want the Liberal Democrats to argue for the removal of the special exemption for the self-employed – and if we’re in Government again, we should insist on it. This loophole can’t be forced on Britain and we mustn’t accept it.

We also need to be prepared to go beyond the seven year maximum for transition controls, depending on the size and economy of the country joining the EU – and the extent to which we expect its nationals to look for work here.

I also believe we’ll need to agree a period of time – once the controls have been lifted – in which existing member states including Britain retain the right to put on the brakes if people begin arriving in numbers too big for our society to absorb successfully.

This is not about bolting the door, but it is about steadying the flow of people into Britain in a way that is careful and honest. It is in everyone’s interests – British born or not – for people living here to feel confident that, when a new member joins the EU, there will be no surprises and they have nothing to fear.

• Nick Clegg is the Sheffield Hallam MP, Deputy Prime Minister and leader of the Liberal Democrats.