EU-UK free movement compromise will need flexibility

Significance

The UK government says it is determined that free movement of people from the EU will end after Brexit.

Impacts

• An upcoming immigration White Paper will provide greater clarity about the UK government’s approach.
• Proposals to reform the EU's Posted Workers Directive could trigger Eastern European opposition, deepening the east-west divide.
• Stricter post-Brexit UK immigration policies could lead to labour shortages and skills gaps in sectors such as agriculture and health.
• Improving euro-area economic prospects could encourage EU nationals living in the United Kingdom to return to the continent.