Building on the analysis of eleven cross-border regions and a thorough review of current literature on cross-border regions and policies, we identified four distinct governance models used in cross-border labour markets. In today’s post, we will explore cross-border integration despite a lack of formal organisation.

In some cross-border regions, there is a high degree of labour market integration despite the absence of formal governance structures. Examples of such regions include the Eastern Brandenburg-Lubuskie region on the Polish-German border and the Austrian-Hungarian border. These areas experience significant cross-border commuting and labour market activity without well-established institutional frameworks to manage this mobility. In many cases, the absence of formalised governance means that local cooperation occurs informally or through ad hoc agreements.

In regions like the Austrian-Hungarian border, cross-border cooperation has declined in recent years. Despite growth in cross-border commuting, the institutional framework and governance between Austria and Hungary remain weak. Although thousands of Hungarian workers commute daily to Austria due to wage differences and employment opportunities, no active cross-border organisation exists to address shared challenges. Cross-border labour mobility is supported by good transport links, but there is a lack of formal institutions or bilateral agreements to manage the complexities of cross-border employment.

One of the main challenges for regions without formal governance is the lack of data-sharing mechanisms and coordinated efforts to address labour market issues. In regions such as these, there is often no systematic collection of cross-border indicators, which makes it difficult to monitor and understand cross-border labour dynamics effectively. As a result, policies that could address the needs of commuters or regional labour imbalances are often underdeveloped.

While the absence of formal governance structures does not prevent cross-border labour mobility, it limits the ability of these regions to respond proactively to challenges, such as differences in qualification recognition, tax regulations, and social security systems.

The full report detailing the governance models and case studies will be available to the public after the project’s official conclusion in early 2025. In the meantime, if you have any comments or questions, feel free to reach out to us.