Second EU survey on workers’ remittances from the EU to third countries. Summary Report, October 2006

The Commission services sent to Member States a second questionnaire on workers’ remittances from the EU to third countries in May 2005. Built on the first survey that was sent in 2004 and in response to the Guadalajara and the Rabat summits, the current survey extended its scope by requesting a geographical breakdown of flows channelled to Eastern Europe, the Mediterranean, Latin America and the Caribbean. This report summarises Member States' replies to the second survey.

The survey shows that remittances from the EU to third countries increased from €6.2 billion in 2000 to almost €9 billion in 2004. This was mainly driven by flows to developing countries which increased from €4.3 billion in 2000 to €6.6 billion in 2004. A few major corridors were identified, notably from Germany and France to the Mediterranean region, from Spain to Latin America and from Germany to Eastern Europe. Transaction costs incurred by migrants in Member States differ according to the amount remitted, and tend to vary more among Member States than among
different transfer channels used, thus offering some scope for efficiency gains to be fostered by increased integration and competition in the remittances market. In order to reduce costs in the formal transfer system, several Member States have launched initiatives aiming at facilitating the flow of remittances to recipient countries. Being only very recently implemented, it is still too early to draw conclusions on the way and extent that these initiatives effectively facilitated remittance flows and on whether migrant transfers contributed to improving economic and social conditions in
developing countries.

European Commission: DG Economic and Financial Affairs: Publications: International economic issues: First EU survey on workers’ remittances from the EU to third countries, 2004 http://ec.europa.eu/economy_finance/publications/internationaleconomicissues/survey2004_en.pdf

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