President Nicolas Sarkozy made an important announcement in Warsaw last week. From July, the Polish plumber and other citizens of the 2004 accession countries to the European Union will be able to work freely in France – a year ahead of schedule and three years ahead of the final deadline. It is probably the most significant measure of liberalisation undertaken by his administration. There have been other reforms, nothing truly radical so far, but the process is continuing.

On the other side of the Rhine, the last notable reform dates back to late 2005, when Germany’s “grand coalition” decided to raise the pension age to 67 years. (I do not count a corporate tax cut as a structural reform). What has followed is not only an absence of economic reforms but also anti-reform. Some of the welfare changes initiated by the previous government were reversed. There are new minimum wages in several sectors. The trade unions have since experienced a renaissance in membership and negotiating power. It is out of the question that Germany will even consider opening the domestic labour market to the accession states ahead of schedule. Germany’s borders will remain firmly shut for another three years.