Duits onderzoek: "EU-Grondwet gevaar voor West-Europese welvaartsstaat" (en)

The European Constitution is a threat to welfare state systems in Western Europe, according to Hans-Werner Sinn, the president of the Munich-based German Institute for Economic Research (IFO), one of the largest economic research institutes in Germany.

Should the current draft Constitution be adopted in its present form, then the social state systems in the old EU-15 might collapse, Mr Sinn warned in a Spiegel report.

His concern is that, whilst the free movement of labour between the new and old member states can be restricted for another six years, self-employed people may take up residence in "old Europe" immediately. Mr Sinn believes there is a danger that the social security systems of Western Europe will not be able to accomodate them.

"It would be right to change this part and not yet move towards a Social Union", Mr Sinn argues.

EU heads of state meet for a summit in Brussels tomorrow (17 June) where agreement on the European Constitution is expected.

Part of the compromise is moving from unanimous decision making to qualified majority voting on social security regulation. This would, however, be accompanied by the right of any state to block decisions temporarily by using a so-called "emergency brake" to refer the matter to EU leaders in the European Council.

The German ministry of social affairs flatly rejected Mr Sinn's conclusions and said he should stop unsettling people with false allegations.