Dear Mr.----------,

Thank you for your email of 25 February 2005.

Firstly, as you may be aware, European Union law does not replace existing national social security schemes with a single European system. Rather, each Member State remains responsible for its own system. Therefore, as regards its own social security system, each State decides: who is insured; which benefits shall be provided; the eligibility conditions for benefits; and the value of the benefits. However, there are EU provisions for the co-ordination of these systems in Council Regulations (EEC) Nos. 1408/71 and 574/72. These provisions try to ensure that migrant workers do not lose their social security protection when moving within the EU.

Until Bulgaria accedes to the EU (envisaged for 1 January 2007), Regulations 1408/71 and 574/72 will not bind Bulgaria, and Bulgarian nationals will be unable to rely on those provisions, nor on the EU rights of free movement.

From the day of accession, Bulgaria will become subject to the EU principle that a citizen of the EU may be subject to the legislation of only one Member State at any one time. This principle applies to all employed and self-employed persons covered by the EU provisions, regardless of the number of Member States where they carry out an occupational activity. In general, a worker is insured in the State in which he exercises his occupational activity, and the social security legislation of that State will provide that he has the same rights and obligations as nationals of that country.

For the reasons explained above, until 1 January 2007, the Bulgarian authorities' decision to demand that Bulgarian citizens living abroad nevertheless pay social security contributions for the period 2000 to 2005, remains a matter of Bulgarian law alone.

However, the Commission will raise this matter with the competent Bulgarian authorities at the appropriate forum.

For further information on the EU provisions on social security and movement of persons, I refer you to the resources on our website:

http://europa.eu.int/comm/employment_social/social_security_schemes/index_en.htm
http://europa.eu.int/comm/employment_social/free_movement/index_en.htm

Sincerely
Martin Schieder