1. The EU Blue Card Directive and its Review
30/11/2015
Jan Saver
European Commission - DG Home Affairs
Unit “Immigration and Integration”
This presentation does not represent the official position of the European Commission. The views expressed are those of the authors. Please do not quote or use any part of it without the authors' permission. 1

2. The need for a labour migration policy
1. The Directive
The need for a labour migration policy
Migration, including for work, is inherent to a large, open economy such as the EU: a question of management and optimisation
EU is popular among highly-qualified (potential) migrants, yet relatively few make it here
Current: 60 % of low-educated migrants choses EU, 60 % of highly- educated choses non-EU OECD destinations
Potential: 33 % of all highly-educated intending to migrate prefers the EU/EEA vs 19 % preferring the US
Net immigration cushions the effect of demographic ageing
EU economy needs to address labour shortages, including through migration if necessary, to remain competitive
Top bottleneck occupations are in health, ICT, engineering, sales and finance
Low mobility of EU citizens
Data excl UK, IRL, DK - 40 percent family reunification
Need to adapt policies to non-labour migrants --
Ageing and dependency: also an issue in Brazil, Russia, China.
Workers are not substitutes
Other policies: retirement age, activation, participation, training 2

3. History of the Blue Card Directive
1. The Directive
History of the Blue Card Directive
2007: Proposal for a for a Council Directive on the conditions of entry and residence of third-country nationals for the purposes of highly qualified employment
Relatively long negotiations (under pre-Lisbon rules):
Opposition of some MSs
More optional “may”-clauses and references to national law
More restrictive provisions than in proposal
May 2009: final adoption of the Council
December 2009: Lisbon Treaty into force
The salary specified in the work contract must be at least equal to a certain threshold set at national level. Member States are free to set this threshold at a level compatible with their labour market and immigration policies. However, it has been considered necessary to set a relative minimum threshold - linked in primis to the minimum wage set out in national laws - to ensure that Member States do not empty this criteria by setting a level which would be too low for a national or EU highly qualified worker to accept the vacancy, although corresponding to his/her qualifications.
Professional experience: 3 years
Young professionals: young professionals of less than 30 years of age, who are likely not to have enough professional experience to claim high salaries. In this case, the ancillary mandatory condition is to have completed higher education studies in a field related to the activity to be performed according to the work contract. A further softening of the salary criteria is proposed for young professionals having studied in the EU. 3

4. Purpose 1. The Directive Improve attractiveness of EU
Facilitate admission and mobility
Harmonise entry and residence conditions
Simplify admission procedures
Improve legal status

5. EU attractiveness: multifaceted
1. The Directive
EU attractiveness: multifaceted
Legislation: not just admission
But, also:
Wages and working conditions
Economic situation
Educational systems, family support
Attitude towards migrants
Prospects for career and personal development
Attractiveness is not about setting low entry requirements or reducing cost of procedures
Also, a policy which sees labour migrants as moveable assets responding only to economic incentives will not be effective. When evaluating the attractiveness of the EU (or any destination), labour migrants evaluate the entire "package". This includes not only wages and working conditions, but also social security, tax regimes, educational systems (esp. if families are involved), administrative burden, a society's attitude towards immigrants, security and long-term career and residence prospects. Although the EU scores very well on some of these aspects, it does less well on others. When discussing strategies that could deliver better outcomes, such as attracting more highly-skilled, these elements (related to the 'rights' given to migrants) should be taken into account.
Migrants evaluate the entire package
Bad news makes us forget the EU is still the largest economy in the world, and very big in int'l trade
EU is good place to live and to work, and to raise a family

6. 1. The Directive
Scope
Applicable in 25 Member States (not in UK, DK, IE)
Third-country nationals (TCN) = non-EU citizens
different from "mobility" of EU citizens/workers
Highly qualified workers:
higher professional qualifications: higher education qualification (studies of min. 3 years) or at least five years of relevant professional experience.
Paid employees
Not self-employed workers, service providers or entrepreneurs 6

7. Main elements 1. The Directive
Work contract or binding job offer (min. 1 year)
Minimum salary requirement
At least 1,5 times the average gross annual salary in the MS concerned
Optional for MSs: lower salary threshold of at least 1,2 times for bottleneck professions
Relevant higher professional qualifications (and for regulated professions: meet the legal requirements in MS)
Valid travel document, proof of health insurance
Possible grounds for refusal:
Threat to public policy, public security or public health, labour market test, ethical recruitment restrictions and caps on volumes of admission
Extensive rights for Blue Card holder and family
Several optional provisions giving Member States flexibility in implementation
Enter, re-enter and stay in the issuing Member State and pass through other Member States
Allowed to work in the sector concerned
Limitations on labour market access (always first 2 years; optional after)
Equal treatment with nationals on certain social rights
Improved rules on family reunification
Family members can work; faster procedures (max. 6 months)
Facilitation for Long-Term Resident status
Allows accumulation of periods of residence in different MSs and longer periods of absence
After 18 months, may move to another Member State upon fulfillment of conditions
Via “May”-clauses and references to national law, for instance:
Recognising five years of relevant professional experience instead of higher education qualification (art. 2)
Salary threshold of at least 1,5 times average gross annual salary (art. 5.3)
Optional salary threshold of at least 1,2 times (art. 5.3)
Volumes of admission, i.e. quota possible (art. 6)
Period of validity of the EU Blue Card (art. 7(2))
Between 1 and 4 years
Labour market test (art. 8(2))
Applications for admission (art. 10)
By the applicant and/or employer?
In and/or outside the country?
Procedural safeguards (art. 11):
Time limit for deciding on applications
Rights
Labour market access (art. 12)
Equal treatment (art. 14)
Residence in other MS (artt. 18 and 19)

8. Comparison EU Blue Card with national HSW schemes
2. Statistics
Comparison EU Blue Card with national HSW schemes
2012
2013
2014
Blue Cards
National schemes
EU28
33.321
32.458
35.527
EU25
3.664
19.755
12.964
21.940
13.724
24.913 BE 95 5 73 19
2.484 BG 15 14 21 CZ 62 69 72
104 46 DK
not applicable
4.088
5.730
5.698 DE
2.584
210
11.580 11
12.108 13 EE 16 12 IE
1.408
1.707
2.438 EL
n.y.a. ES
461
1.231
313
1.480 39
2.137 FR
126
3.037
371
2.667
597
2.561 HR
in force: 2013 10
565 7 IT 6
1.695 87
1.543
165
1.066 CY
600
385
469 LV 17
106 82 32
122 LT 26 92 LU
183
236
262 HU 1 4 MT 2 NL
5.514 3
7.046
7.123 AT
124
1.158
108
1.228
1.083 PL
206
387
688 PT
767
989 RO 71
190 SI 9 8 SK FI
749
971
1.120 SE
4.751
4.666
5.012 UK
8.070
3.081
2.478
Source: Eurostat

9. EU Blue Cards by citizenship in 2014 - Top 20
2. Statistics
EU Blue Cards by citizenship in Top 20
117 nationalities in total
Source: Eurostat

10. 2. Statistics EU Blue Cards by occupation, 2014 Managers Left graph:
Total
2014
13.724
Unknown
12.309
89,69%
ISCO08
Known occupation
1.415
10,31%
OC1
Managers
434
30,67%
OC11
Chief executives, senior officials and legislators 32
2,26%
OC12
Administrative and commercial managers
163
11,52%
OC13
Production and specialised services managers
232
16,40%
OC14
Hospitality, retail and other services managers 7
0,49%
OC2
Professionals
981
69,33%
OC21
Science and engineering professionals
576
40,71%
OC22
Health professionals 15
1,06%
OC23
Teaching professionals 12
0,85%
OC24
Business and administration professionals
162
11,45%
OC25
Information and communications technology professionals
136
9,61%
OC26
Legal, social and cultural professionals 80
5,65%
Managers
Left graph:
Total number of Blue Cards compared to national permits for highly qualified employment
Disclaimer: 2013 numbers only for 15 MS; going on the provisional numbers it can be expected that especially the numbers for the national schemes will still go up most
Right graph:
Detailed numbers per MS.
Green indicates significantly higher numbers for BC or for national permits.
Professionals
Source: Eurostat 10

11. Policy choices by Member States: salary threshold
3. Implementation
Policy choices by Member States: salary threshold
BC > 1,5 average salary in MS
BC = 1,5 average salary in MS
BC < 1,5 average salary in MS
Criteria for admission: salary threshold (Article 5)
Article 5(3)
Salary threshold of at least 1,5 times the average gross annual salary in the Member State
1,5 times average gross annual salary: most MS
Higher thresholds: RO (4 times) and LT (2 times)
Article 5(5)
Salary threshold of at least 1,2 times the average gross annual salary for employment in professions which are in particular need of migrant workers and belong to ISCO major groups 1 and 2
Transposed the option: CY, DE, EE, EL, ES, HU, LU, MT and PT
Made use: DE, EE, HU and LU
MS are obliged to define and publish the relevant salary thresholds
The annual earning here is the mean (own calculation) of the annual earning* in the following sectors (Eurostat data refer to 2010 – latest update): Industry, construction and services (except public administration, defense, compulsory social security) + Business economy + Industry and construction + Education; human health and social work activities; arts, entertainment and recreation; other service activities
* Def from Eurostat: Annual gross earnings also cover 'non-standard payments', i.e. payments not occurring in each pay period, such as: 13th or 14th month payments, holiday bonuses, quarterly or annual company bonuses and annual payments in kind. In the case of employees not having worked the whole year, annual data is adjusted to weeks in order to account for earnings on an annual basis. On the other hand, employees working less than 30 weeks in a year are not taken into account in the calculation of annual earnings".
Based on available data on thresholds in 2013 (where not available 2012 data) 11

12. Policy choices by Member States: validity
3. Implementation
Policy choices by Member States: validity
1 year: BG, CY, ES, LT, MT and PT
13 months: BE
2 years: AT, CZ, EL, FI, IT, LU, PL, RO, SE and SI
2 years and 3 months: EE
3 years: FR and SK
4 years: DE, HU and NL
5 years: LV
Duration work contract + 3 months if the work contract or binding job offer covers a period less than the standard period of validity: All MS except BE, FR and ES
Is a permanent permit: people can stay forever and progress towards long-term residency and citizenship
Wide variations due to policy choices of MS 12

13. Policy choices by Member States: who can apply from where?
3. Implementation
Policy choices by Member States: who can apply from where?
Who can apply?
TCN applicant: majority of MS
Employer: CY, ES, FR, IT and MT
Applicant and employer: BE and LV
Applicant or employer: NL, AT, PT and SI
Lawyer: allowed in AT and NL
Where?
Outside or in the MS with valid residence permit or national long-stay visa: most MS
Derogation: legally present in MS: all MS except BG, EL, ES, FR, IT, LV, PL and RO
While the majority of MS have not opted to set volumes of admission of highly qualified migrants, some MS have foreseen this possibility in line with Article 79(5) of the Treaty on the Functioning of the EU.
Those that have effectively imposed volumes of admission have different approaches for setting these. MS are obliged to communicate if measures imposing volumes of admission are enacted.
In some MS volumes of admission are calculated as a percentage of the national work force or population, or in function of the unemployment level or labour market requirements, sometimes by region and specialisation. In several MS the volumes of admission are set every 1 or 2 years by the relevant Ministers.
Currently applied by one MS:
CY: volume currently set at zero;
[EL: due to no demand EL has not yet activated its system to determine, by ministerial decision, the maximum number of jobs for highly qualified employment granted to third-country nationals.] 13

14. The Blue Card as a political priority
4. The Review
The Blue Card as a political priority
President-elect Junker's Political Guidelines (July 2014)
“I want Europe to become at least as attractive as the favourite migration destinations such as Australia, Canada and the USA. As a first step, I intend to review the “Blue Card” legislation and its unsatisfactory state of implementation.”
European Agenda on migration (May 2015)
“A review of the Directive will look at how to make it more effective in attracting talent to Europe. The review will include looking at issues of scope such as covering entrepreneurs who are willing to invest in Europe, or improving the possibilities for intra EU mobility for Blue Card holders.”
President Juncker’s State of the Union speech (September 2015)
“The Commission will come forward with a well-designed legal migration package in early 2016.” > Legal migration package in March 2016
Wide variations between MS in the way the Directive is applied & in the number of Blue Cards granted
Probable competition effect between national schemes for attracting HSW and EU Blue Card
Impact of the EU Blue Card on attracting highly qualified migrants to the EU?
Too early to draw final conclusions but serious concerns for the success:
Low numbers
Flaws in the transposition
Low level of coherence
Limited set of rights
Barriers to intra-EU mobility
General need to improve communication of data and information by MSs

15. Review of the Blue Card 4. The Review Evaluation
Examination of functioning of the existing EU Blue Card Directive
Assessment of the baseline situation as reference point for potential further policy measures
Impact assessment analysis for potential revision of EU Blue Card Directive
Develop policy options
Assessment of the impacts of the policy options
Support instruments
Stakeholder consultations
Expert consultations
Study to support evaluation and impact assessment
Examination of functioning of the existing EU Blue Card Directive:
In-depth assessment of relevance, coherence, effectiveness, efficiency, EU added value and impact of the current EU Blue Card Directive
Mapping and assessment of the baseline situation in view of potential further policy measures and extension of the scope:
National parallel schemes with a similar target group as EU Blue Card Directive in all Member States.
Relation EU Blue Card Directive-national parallel schemes
coherence, complementarity and competition?
Situation regarding entrepreneurs (including start-ups) and service providers
entry and stay requirements in the national legislation of Member States
programmes of support measures to attract, facilitate and stimulate entrepreneurship
Situation regarding facilitated access for recent graduates
International comparison
Major comparable destination countries (US, Canada, China, Australia, UK)
Map and assess and benchmark the EU
Existing labour migration schemes
Economic migration situation (current and forecast)

16. Stakeholders 4. The Review Businesses Online open public consultation
Expert Group on Economic Migration
5 November 2015: Meeting with and targeted consultation of German business associations
Online open public consultation
On the EU Blue Card and the EU’s labour migration policies
Targets broadest public possible
27 May – 30 Sept 2015
Online, in all official EU languages
626 contributions
(potential) Blue Card holders
Public consultation
Large-scale survey & research project by DE (BAMF) on Blue Card holders
Member States
Public consultation
Bilateral meetings
European Migration Network
Trade Policy Committee
Social partners
• Public consultation
• Expert Group on Economic Migration
• 3 December 2015: Presentation for and targeted consultation of Labour Market Observatory (LMO) of European Economic and Social Committee (EESC)
Online open public consultation
Target audience:
All citizens, organisations and third-country nationals (inside and outside the EU) are welcome to contribute.
Contributions are sought from employers (large and Small and Medium Enterprises), employers’ associations, third-country national workers and entrepreneurs already legally residing in the EU, potential third-country national workers and entrepreneurs outside the EU, private/public employment matching organizations, trade unions, ministries and employment agencies of Member States, regional and local authorities, statistical offices, media, academia, international organisations, organisations or authorities of the countries of origin, social partners and civil society in general.
Expert Group on Economic Migration (EGEM)
Goal: support the future policy development in the field of economic migration, for instance skills, labour shortage, economic migration Directives, such as the EU Blue Card, including the assessment of shortcomings and further improvement
MEMBERS: BDA, Business Europe, Council for Global Migration, ETUC, Eurochambers, European Network of Migrant Women, FIERI, Fragomen, ITUC, Migration Observatory Oxford, MPC, Migreat, MPI Europe, OECD, Sagardoy Abogados, Trans-Atlantic Business Council, UEAPME, OECD,
Activities:
The first meeting of the EGEM took place on 25 March 2015 to discuss specific questions related to the themes: "Better managing Labour Migration at the EU level" and "Reviewing the EU Blue Card". In follow-up to this meeting experts were also invited to submit written input which over half of the experts did.
Further meetings: provide further advice and analyse and exchange information on the conclusions of the public consultation, the study, and other developments
Others (EU citizens, third countries, NGOs, IOs,…)
Public consultation 16

17. Issues under consideration
Next steps: define policy options & assess their impacts
4. The Review
Issues under consideration ? ?
Ensuring the effective implementation of current legislation: guidelines on interpretation, enhanced MS cooperation
Enhancing third-country cooperation: mobility partnerships
Revising the admission conditions: salary threshold and/or higher professional qualifications (higher education qualifications and/or 5 years equivalent experience ?
Revising the rights: grant faster access to LTR status, family reunification,…
Expanding the scope: medium skilled workers, entrepreneurs, investors, service providers, highly-skilled (potential) applicants of international protection,…
Revising the procedures: faster, on the territory,… ?
Facilitating the recognition of foreign qualifications ?
Revising the intra-EU mobility: easier mobility for new job; allow working in other MS for same employer for limited periods
Better matching of employers and third-country national job-seekers
Increase the role for employers in the admission process: facilitation for accredited employers
Relationship with national schemes for highly skilled: complementary or competition?
Boost promotion of the EU Blue Card scheme to employers and potential migrants: targeted websites, online visibility, roadshows,…
EU-wide point-based system with fast-track procedure
Expression of interest system creating an EU-wide pool of skilled migrants… ?
Combinations of legislative & non-legislative policy options 17

18. THANK YOU FOR YOUR ATTENTION18