(BERLIN) - The German cabinet on Wednesday approved plans to loosen employment restrictions on engineers from the new EU member states in eastern Europe to help make up for the country's shortage in skilled labour.

The measures would apply to electrical and mechanical engineers from the 10 nations that joined the European Union in 2004, the labour ministry said in a statement.

They will be allowed to come to work in Germany for an unspecified period from November 1, if the cabinet's decision is approved by parliament next month.

The cabinet also decided that students from the new EU member states who have completed high school in Germany, would be allowed to work in the country for three years.

Germany in 2004 imposed a two-year time limit on people from the 10 new EU member states working in Germany, and last year extended this restriction for another three years for fear of being flooded with foreigners.

The political decision, which could under EU rules be extended for another two years in 2009, was sharply criticised by the corporate sector.

The German economy, the biggest in the eurozone, is experiencing a robust recovery after years in the doldrums and companies began hiring anew in early 2006.

Experts estimate that Germany currently has a shortage of 20,000 to 40,000 engineers.

The Organisation for Economic Cooperation and Development's annual education survey released on Tuesday, pointed out that for every 100 German engineers who are about to retire, only 90 freshly qualified ones enter the market.

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