EU draft legislation eyes further fight to end under-the-table economy

The European Parliament in a vote on Tuesday endorsed draft legislation establishing a "European platform" to enhance cooperation in combating undeclared work in the European Union (EU), said a parliament statement issued here.

The platform would see EU member states' labor ministries, trade unions and employers' associations work more closely together on how to better tackle unreported pay that "is damaging the EU economy and distorting the labor market," the statement said.

Undeclared work generally refers to any paid activity that is lawful in nature, but not declared to public authorities such as tax offices or labor inspectorates. The statement said the undeclared economy accounts for 18 percent of the EU GDP (gross domestic product).

The proposed platform would encourage practical, effective and efficient cross-border actions and develop a reliable and efficient system of rapid information exchange between national bodies, the statement said.

However, it would neither interfere with member states' own actions, nor seek to harmonize their rules, says the text of the draft legislation.

The long-term goal is to help improve working conditions and integrate undeclared workers into the labor market, according to the statement. Endit