The contribution of migrant workers to the economy justifies Ireland's decision to allow free movement of workers from EU accession states, Ibec's director of European and social affairs Maria Cronin said yesterday.

Speaking on the second anniversary of EU enlargement, which saw the EU take in 10 new states from eastern Europe under Ireland's presidency of the EU, Ms Cronin said the economies that had responded flexibly to enlargement had benefited.

"It is interesting to note that the countries that applied free movement from 2004, Ireland, the UK and Sweden, are also the economies that have subsequently outperformed the rest of the old EU 15."

These developments had vindicated Ibec's 2002 campaign for the endorsement of the Nice Treaty referendum she said, adding that other pre-enlargement states of the EU were re- examining their position on worker mobility.

Finland, Spain and Portugal have agreed to allow workers from enlargement states to work without permits and most other members states are beginning a process of opening up their labour markets in a similar manner.

"Following the recent successful outcome to the 2007-13 EU budget negotiations, the next challenge facing the union, during the period of reflection on the EU constitutional treaty is to find a way to finally deliver more prosperity and jobs to Europe's citizens," said Ms Cronin.

"Europe must get back to doing what it does best - promoting free trade and fair competition," she added.