In a further sign of the impracticability of the European Union super state, the Dutch and German governments blocked any new membership applications over fears of a new wave of Eastern European jobseekers undercutting their own workforces.

The issue of the free movement of people across the EU and its damaging effect to national economies came to a head at a European Commission assessment of a membership application request from Montenegro.

The official representatives from Germany and the Netherlands said they were concerned that if Montenegro is considered then entry bids will quickly follow from Albania, Bosnia and Serbia. All these countries were promised future EU membership in 2003. Croatia is already expected to join the EU in January 2011.

Spain, France and Belgium have also raised concerns over announcing new EU expansion as debates over foreign workers are becoming more heated.

Further discussion of the issue is due next month when ministers will formally decide whether the Montenegro bid will be allowed to continue.

An official involved in the talks was quoted as saying that the “Dutch said that the Lindsey refinery dispute has proved that enlargement and free movement of workers can be difficult to sell to EU electorates.”

Britain was widely seen as the EU country most open to foreign workers, so spreading “British jobs for British workers” protests have been seen by other countries as a turning point. “If the British cannot sell it to their own people, who else can?” said a diplomat.

Germany holds national elections this autumn and the question of jobs being lost to Eastern Europeans workers is expected to be a major issue.

The economic crisis has made governments increasingly sensitive to claims that foreign workers, from new EU countries such as Poland or the Czech Republic, are taking domestic jobs at a time when labour markets are contracting.

The temperature of the debate will be raised further at the end of April when Germany, Austria and Belgium extend restrictions on free movement of workers from the eight central and Eastern European countries that joined the EU in May 2004.

Eleven countries have continued restrictions on Bulgaria and Romania, which both joined the EU in 2007, until 2012.

Britain was notable in its refusal to impose those restrictions.