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EUROPE

European anger ensures further twists in Opel saga

Tempers are rising in Europe over Germany's promise of billions of euros in state aid to support the sale of General Motors' loss-making European unit Opel/Vauxhall.

European anger ensures further twists in Opel saga
Photo: DPA

In a preliminary deal announced in Berlin with great fanfare on September 10, GM is selling a 55 percent stake to Canadian auto parts-maker Magna and Russian state-owned lender Sberbank.

Chancellor Angela Merkel’s government, keen to safeguard the jobs of Opel’s 25,000 German employees, half the total in Europe, agreed to sweeten the deal with €4.5 billion worth of public money.

Merkel was eager to secure a rescue before elections on September 27. She duly won a second term.

The financing was contingent, however, on other European governments where Opel has plants, such as Britain, Spain, Poland and Belgium, stepping up to the plate and providing their own taxpayers’ money too.

Instead, the deal has been met with grumbling, with these countries unwilling to stump up cash for a deal that they see as only guaranteeing German jobs and keeping German plants up and running.

With Opel losing money fast, dependent on a market where too many cars are being made for too few customers, Magna is reported to be looking to take around 10,500 workers off the payroll.

British Prime Minister Gordon Brown’s government, which has a far tougher re-election battle than Merkel waiting for it next year, has made clear that it is not amused.

Peter Mandelson, British business secretary, told the Financial Times in Seoul last Thursday he could not “sign off” on the deal in its current form, citing “shortcomings” identified in an independent auditors’ report.

Britain, where Vauxhall employs 4,700 people, is ready to provide €400 million in loan guarantees, but first wants assurances that two plants in Luton and Ellesmere Port remain open, the FT said.

Spain, where Opel employs 7,000 people in Zaragoza province, has also been up in arms, with Industry Minister Miguel Sebastian boycotting a European meeting on Opel in Berlin on Friday.

“We have never been favourable to Magna’s offer,” a spokesman in Madrid said on Friday, with Sebastian “pretty unhappy” after the last get-together in the German capital.

Instead, Sebastian met with Magna boss Siegfried Wolf, appearing afterwards slightly more conciliatory, pledging to improve “communication problems” with the Canadian firm.

In Belgium, where Opel’s Antwerp plant is seen as a prime target for closure, thousands of workers, including hundreds from Germany, held a mass protest last month. The plant employs around 2,500 workers.

These countries have turned to EU headquarters in Brussels for help. EU Competition Commissioner Neelie Kroes is scrutinising the deal to determine whether Germany’s state aid was contingent on German plants not being closed, which would make it illegal.

Germany, though, has expressed confidence that all will be well, and GM, Magna and Berlin reportedly want to sign a final deal this week. The transaction would then be completed by the end of November.

But analyst Tim Urquhart from IHS Global Insight said this aim was ambitious as long as there was no thumbs-up from the EU and no deal with unions on employees taking a 10-percent stake in “New Opel”.

“I have said right from the start that there are still a lot of twists and turns to be done before this deal is completely signed off,” Urquhart said.

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BREXIT

OPINION: Pre-Brexit Brits in Europe should be given EU long-term residency

The EU has drawn up plans to make it easier for non-EU citizens to gain longterm EU residency so they can move more easily around the bloc, but Italy-based citizens' rights campaigner Clarissa Killwick says Brits who moved to the EU before Brexit are already losing out.

OPINION: Pre-Brexit Brits in Europe should be given EU long-term residency

With all the talk about the EU long-term residency permit and the proposed improvements there is no mention that UK citizens who are Withdrawal Agreement “beneficiaries” are currently being left out in the cold.

The European Commission has stated that we can hold multiple statuses including the EU long-term permit (Under a little-known EU law, third-country nationals can in theory acquire EU-wide long-term resident status if they have lived ‘legally’ in an EU country for at least five years) but in reality it is just not happening.

This effectively leaves Brits locked into their host countries while other third country nationals can enjoy some mobility rights. As yet, in Italy, it is literally a question of the computer saying no if someone tries to apply.

The lack of access to the EU long-term permit to pre-Brexit Brits is an EU-wide issue and has been flagged up to the European Commission but progress is very slow.

READ ALSO: EU government settle on rules for how non-EU citizens could move around Europe

My guess is that few UK nationals who already have permanent residency status under the Withdrawal Agreement are even aware of the extra mobility rights they could have with the EU long-term residency permit – or do not even realise they are two different things.

Perhaps there won’t be very large numbers clamouring for it but it is nothing short of discrimination not to make it accessible to British people who’ve built their lives in the EU.

They may have lost their status as EU citizens but nothing has changed concerning the contributions they make, both economically and socially.

An example of how Withdrawal Agreement Brits in Italy are losing out

My son, who has lived almost his whole life here, wanted to study in the Netherlands to improve his employment prospects.

Dutch universities grant home fees rather than international fees to holders of an EU long-term permit. The difference in fees for a Master’s, for example, is an eye-watering €18,000. He went through the application process, collecting the requisite documents, making the payments and waited many months for an appointment at the “questura”, (local immigration office).

On the day, it took some persuading before they agreed he should be able to apply but then the whole thing was stymied because the national computer system would not accept a UK national. I am in no doubt, incidentally, that had he been successful he would have had to hand in his WA  “carta di soggiorno”.

This was back in February 2022 and nothing has budged since then. In the meantime, it is a question of pay up or give up for any students in the same boat as my son. There is, in fact, a very high take up of the EU long-term permit in Italy so my son’s non-EU contemporaries do not face this barrier.

Long-term permit: The EU’s plan to make freedom of movement easier for non- EU nationals 

Completing his studies was stalled by a year until finally his Italian citizenship came through after waiting over 5 years.  I also meet working adults in Italy with the EU long-term permit who use it for work purposes, such as in Belgium and Germany, and for family reunification.  

Withdrawal agreement card should double up as EU long-term residency permit

A statement that Withdrawal Agreement beneficiaries should be able to hold multiple statuses is not that easy to find. You have to scroll quite far down the page on the European Commission’s website to find a link to an explanatory document. It has been languishing there since March 2022 but so far not proved very useful.

It has been pointed out to the Commission that the document needs to be multilingual not just in English and “branded” as an official communication from the Commission so it can be used as a stand-alone. But having an official document you can wave at the immigration authorities is going to get you nowhere if Member State governments haven’t acknowledged that WA beneficiaries can hold multiple statuses and issue clear guidance and make sure systems are modified accordingly.

I can appreciate this is no mean feat in countries where they do not usually allow multiple statuses or, even if they do, issue more than one residency card. Of course, other statuses we should be able to hold are not confined to EU long-term residency, they should include the EU Blue Card, dual nationality, family member of an EU citizen…

Personally, I do think people should be up in arms about this. The UK and EU negotiated an agreement which not only removed our freedom of movement as EU citizens, it also failed to automatically give us equal mobility rights to other third country nationals. We are now neither one thing nor the other.

It would seem the only favour the Withdrawal Agreement did us was we didn’t have to go out and come back in again! Brits who follow us, fortunate enough to get a visa, may well pip us at the post being able to apply for EU long-term residency as clearly defined non-EU citizens.

I have been bringing this issue to the attention of the embassy in Rome, FCDO and the European Commission for three years now. I hope we will see some movement soon.

Finally, there should be no dragging of heels assuming we will all take citizenship of our host countries. Actually, we shouldn’t have to, my son was fortunate, even though it took a long time. Others may not meet the requirements or wish to give up their UK citizenship in countries which do not permit dual nationality.  

Bureaucratic challenges may seem almost insurmountable but why not simply allow our Withdrawal Agreement permanent card to double up as the EU long-term residency permit.

Clarissa Killwick,

Since 2016, Clarissa has been a citizens’ rights campaigner and advocate with the pan-European group, Brexpats – Hear Our Voice.
She is co-founder and co-admin of the FB group in Italy, Beyond Brexit – UK citizens in Italy.

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