Matthias M. Mayer PhD Candidate, London School of Economics and Political Science

1. GERMANY’S SUPPORT FOR THE EU BLUE CARD DIRECTIVE: LABOUR SHORTAGES, POLICY FIT AND TECHNOCRATIC POLITICS Matthias M. Mayer PhD Candidate, London School of Economics and Political Science

2. OUTLINE 1. Introduction 2. Conceptual framework: consisting of three hypotheses Labour shortages Fit with national legislation Technocratic debate 3. Genesis of Blue Card Directive 4. Empirical Analysis of the three hypotheses 5 Conclusion

3. Why and under what conditions does an EU Member State agree on common EU regulations on economic migration? Generally it is assumed that this only happens with restrictive measures (Fortress Europe) (e.g. Geddes 2000, Bigo 1998, 2005) In 2001, the Commission proposed a Directive on economic migration that was not adopted. What was different regarding the Blue Card? Why Germany? Introduction

4. Labour market and labour shortages Zimmermann & Bonin 2007, Kindleberger 1967, Hollifield 1992, Borjas (1994, 1999) Immigration generally assumed to be economically beneficial If a Member State experiences labour shortages hampering economic growth, it has more open immigration policies. Sectoral labour shortages can exist even in times of slow economic growth and high unemployment Predicts that business interests are in favour of immigration

5. Héritier 1996, Börzel 2002, Börzel & Risse 2000 Misfit between national EU legislation causes adaptation costs, if costs are too high the country will veto the proposed EU measure Especially likely for highly regulated countries, such as Germany Other possibility to avoid adaptation costs: attempt to upload national legislation to the EU level Fit with national legislation

6. The nature of political contestation follows a particular pattern, according to the distribution of costs and benefits across actors (Freeman 2006, Lowi 1964, Wilson 1980) Actors decide on costs and benefits based on their perceptions, according to policy frames (Lavenex 2000, Rein and Schon 1991) A technocratic debate is more conducive for agreeing on EU policies as populist politics are avoided Most likely the case when costs and benefits are diffuse Mode of politics and technocratic debate

7. Proposed October 2007, adopted by the Council in May 2009 Objectives: create a EU work and residence permit for highly qualified workers, increase competitiveness of EU, while Member States determine volumes Issues: definition of highly qualified, right to work in other MS, persistence of national systems Final result: Was extremely watered down, not much European value added (movement between MS remains difficult), national systems exist alongside a 28th EU system Genesis of the Blue Card

8. General economic situation in Germany was not great, but still there were labour shortages in certain sectors Negative initial public reaction by German policy-makers (Ministers of the Interior, Employment and Economics) But actual preference formation happened in the ministerial bureaucracy While most actors agreed to the need for highly skilled immigration, they preferred to regulate this on the national level Labour shortages

9. German immigration law contains provision for highly skilled migration (since 2005) Recent action plan of the government proposed new (and slightly more generous) regulations for highly skilled immigration Misfit was too great and adaptation cost too high National legislation cannot be thwarted by the Blue Card or Blue Card needs to constitute a uploading of German national legislation Fit of national legislation

10. For main actors (relevant Ministries, plus Länder, employer associations and trade unions) costs mostly concentrated and benefits predominantly diffuse Political salience relatively low, debate proceeds on the technical level Uploading of domestic preferences (right to work in other Member Sates, higher salary threshold) and co-existence of national migration regimes enabled solid support for the Directive Technocratic debate

11. Multi-causal explanation: Need to fill labour Shortages, fit with national legislation, and technocratic debate The fit with national legislation causally most important hypothesis as it denotes the line beyond which no support is possible Modes of politics framework allows to systematically compare different policy proposals But framework needs to be modified (regarding entrepreneurial politics and underestimation of the importance of governmental actors) Conclusion

12. Thank you for your attention! Matthias M. Mayer M.M.Mayer@lse.ac.uk