Hungary to restrict Romanians' right to work

BUDAPEST, Nov 16 (Reuters) Hungary, the only European Union member which borders Romania, will become the sole state from the 2004 enlargement wave to impose restrictions on Romanian workers when the Balkan country joins in 2007.

Hungarian government officials, who held a joint cabinet meeting with the Romanian government in Budapest on Thursday, said they did not yet have a precise list of restrictions but said some industries would be protected.

''We propose a policy of partial labour market opening (for Romania) ... to an extent that does not yet threaten the most immediate Hungarian interests,'' Prime Minister Ferenc Gyurcsany told a news conference after the meeting.

The decision sparked outrage among representatives of the 1.5 million ethnic Hungarians living in Romania, who believe the government in Budapest is unfairly discriminating against them.

Hungary is a relatively affluent country of 10 million, while 22 million live in its much larger, and poorer, southern neighbour.

Budapest protested against similar moves from several member states when it joined the European Union in May 2004.

Poland, the Czech Republic, Slovakia and Slovenia have all said they will let in Romanian workers, but many countries in western Europe have imposed restrictions.

''This will primarily hit Hungarians in Transylvania. Mainly those who could go to work in Hungary, who know the language and culture of the country,'' Jeno Szasz, mayor of the majority ethnic Hungarian town of Odorheiu Secuiesc told Reuters.

In October, there were 31,142 Romanian workers employed in Hungary, predominantly in the blue-collar sector, and according to the Hungarian Labour Office, Romania has been the major source of foreign labour in Hungary for the past several years.

Hungary, which despite rising unemployment is struggling with labour shortages in some areas, is an attractive target for ethnic Hungarians in Romania who can earn higher wages there.

''The offer that this company made was more favourable than the ones I could have found at home,'' said Gyorgy Armanhu, an ethnic Hungarian from Romania working for machining company Bergbau Tech in Cegled, east of Budapest.

The company's chief executive, Sandor Ocsai, is keen for more labour liberalisation and says he needs foreign workers for a planned expansion.

''Our experience regarding workers from Romania is very good.

The Hungarian language is very important because we have very high quality demands of complex precision work,'' Ocsai said.

Reuters SK RS2229