Ireland is to renew labour restrictions on Bulgarians and Romanians for a further three years, the Irish Times said on December 31 2008. According to the paper the new restrictions will come into force as of January 1 2009.

The economic downturn was cited as the reason for extending the current two-year ban on Bulgarians and Romanians working in Ireland. Speculation about Ireland extending the restrictions had been ongoing for months before it was officially confirmed.

The Irish government's decision, which was confirmed at the final cabinet meeting, means Bulgarians and Romanians will be required to secure a work permit in order to take up a job there, the Irish Times said.

The newspaper quoted Ireland's minister of state for labour affairs Billy Kelleher as saying that their permit applications would be given preference over those from non-European economic area states.

While the Irish experience of immigration had beeen positive, Kelleher pointed to the "considerable challenges" raised by the global economic downturn as one of the main factors behind the government's decision, The Irish Times said.

It also took into account the views of trade unions and employer groups, as well as other EU member states. In this respect both the Bulgarian and Romanian governments had lobbied to have the restrictions lifted, and argued that they were discriminatory and treated them as second-class EU members.

The UK, Germany and Austria have in the past week also confirmed that they are to retain labour market restrictions for citizens of both states despite a recommendation form the European Commission that they be lifted, The Irish Times said.

Spain was the first European Union country to lift the ban on Bulgarian and Romanian workers out of 15 EU countries who imposed such restrictions when the two countries joined the EU in 2007.

On December 19 2008, the Spanish government decided to lift the restrictions on Bulgarian and Romanian workers taking jobs in Spain.

The Spanish cabinet concluded that letting Bulgarians and Romanians work freely in Spain would not affect the local labour market. This was because the ongoing financial crisis had made Bulgarian and Romanian expats return home instead of staying in Spain. The tendency, according to the Spanish government, was for fewer and fewer workers from the two Balkan countries to come to Spain.

On December 18 2008, Britain announced that migrants from Bulgaria and Romania will continue to be barred from taking most unskilled jobs in the UK. The only exception to this was that 5000 more workers from the two countries will be allowed to undertake seasonal agricultural work. Restrictions will be reviewed again in 2009.