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FINANCE

Schäuble says markets acting irrationally towards eurozone

German Finance Minister Wolfgang Schäuble on Monday called market speculation over the eurozone's financial woes irrational, as he hailed a rescue deal that he said would put Ireland back on track.

Schäuble says markets acting irrationally towards eurozone
Photo: DPA

“The speculation on the international financial markets can barely be explained rationally,” Schäuble told German radio station Deutschlandfunk.

Countries are put under pressure, leading to “fear effects,” Schäuble said. “The markets can make a lot of money in this way,” he added.

Portugal “is under pressure at the moment and therefore it is important that Portugal implement the measures” announced to reduce its deficit, the minister said.

The minister also hailed an €85-billion ($113-billion) EU-IMF rescue package for Ireland after an emergency meeting on Sunday designed to head off the growing pressure on Portugal and Spain.

Schäuble’s comments came as the euro sank in Asian trade Monday with the Ireland deal failing to allay fears that the two southern European countries could be next in line for a rescue after seeing their borrowing costs soar.

Describing the package as a “big success for Europe,” Schäuble said: “I think this programme is suitable for Ireland and if it consistently implements what it has agreed, it can return to a solid and sustainable economy in a few years.”

He appealed for “a bit more calm and a bit more reality” in markets and said there were “no surprises” in new measures agreed by European finance ministers to ensure private investors contribute to the cost of future bailouts.

Ministers agreed that the private sector would in future share the burden after an existing emergency fund expires in 2013.

France and Germany on Sunday reportedly reached a deal that would make the private sector shoulder some of the burden of future EU bailouts only on a case-by-case basis.

The markets have been rattled by German Chancellor Angela Merkel’s proposal for investors to shoulder part of the costs of national bailouts but France’s Le Monde newspaper reported on Monday this would not happen automatically.

The deal would see government bonds coming with “collective action clauses” that would enable their terms to be reviewed in times of crisis, the paper said.

But this would be done on an ad-hoc basis and there would be no automatic expectation that the private sector would have to shoulder some of the burden, the paper said.

The Franco-German deal was being discussed Sunday at emergency talks in Brussels to settle Ireland’s bailout, a diplomatic source told news agency AFP.

EU economic and monetary affairs commissioner Olli Rehn “has put to finance ministers a proposal setting out the shape of the future mechanism,” the source said, which “foresees contributions on a case-by-case basis for the private sector.”

Le Monde said Merkel had hammered out the compromise Sunday in a telephone conference with French President Nicolas Sarkozy.

They were joined on the line by European Central Bank President Jean-Claude Trichet, EU President Herman Van Rompuy and eurozone chief Jean-Claude Juncker.

Merkel made clear on Thursday that a proposal for investors to shoulder part of the costs of national bailouts would apply only after an existing EU rescue scheme expired in 2013.

AFP/The Local

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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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