Free movement of workers in the EU and economic justification of its restriction in Germany and Austria

Summary: It is the basic purpose of this thesis to handle the topic of free movement of workers within the European union. As the first point we have tried to explain some economic aspects of free movement of workers. We have explained that opening of national labour markets has generally a positive impact on national accounts (represented mainly by the gross domestic product). However, the contribution to the increase in the gross domestic product growth rate can be usually observed only in the long term. To the contrary the liberalization of the labour market can lead to an increase in the unemployment rate in the short term. And mainly fear of a higher unemployment rate represents one of the most significant reasons for limitation of entries of foreign employees to the domestic labour market. We have described the legal framework of free movement of workers within the law of European communities, both primary (included in treaties) and secondary (included in regulations and directives). On practical examples - real legal cases - we have explained principles of direct and indirect discrimination, which is prohibited within the European Union both generally and in the area of free movement of persons. We have defined a worker as a person who performs a particular activity for his or her employer, based on..