SHARE
COPY LINK

BREXIT

Sign up for The Local’s Brexit & You newsletter

How will Brexit affect Denmark, a close ally of Britain in the EU, and the other EU nations? Sign up for The Local's 'Brexit & You' newsletter.

Sign up for The Local's Brexit & You newsletter
Photo: AFP PHOTO / Daniel LEAL-OLIVAS/Scanpix

On March 29th 2019 Britain will almost certainly leave the EU. Sign up to The Local's Brexit & You newsletter for the latest on how Britain's departure is affecting the EU's remaining 27 member states – and the Brits living in them.

Brexit & You will be your weekly guide to how the 27 remaining member states of the EU are preparing for the exit of one of the union's largest and most recalcitrant members.

Every Friday, multilingual correspondent Alex Macbeth will bring you weekly news and reflections from around Europe.

What we won't do is give you yet another take on the Brexit negotiations in Brussels (the latest round ended on Thursday, and was 'constructive' according to EU negotiator Michel Barnier), Theresa May's rows with her colleagues or Labour's attempts to paper over the cracks in its Brexit policy. What we will do is tell you how the rest of Europe is dealing with a situation that it didn't ask for, but is having to confront – and how Brits on the continent are managing.

And we're going to strive to make it constructive: Brexit might be bad news for many of us, but we're going to keep this practical and (mostly) non-whiny.

Below you can read the first edition. If you like what you read, sign up here to get it in your inbox every Tuesday.

Busting a move: A sneaky guide to cheating Brexit

The rights of British citizens in the EU and vice-versa are at stake in the Brexit negotiations. But how can Brits continue to live and do business in the EU after Brexit, regardless of the outcome?

Brits who didn't know what the European Union was before Brexit are going to find it much harder to discover the continent after.

Brexit melts away the privilege of moving seamlessly to and between Britain's estranged EU cousins.

If the awkward compound noun wasn't a term used to describe Britain's self-imposed European exile it could easily be the name of a toilet bowl cleaner or a Brazilian mining company.

Whatever it turns out to be, it will throw a spanner in the plans of 1.2 million or so Brits living in 25 Schengen states.

While nobody is getting kicked out of anywhere until at least 2019, Brits may well find they need to fulfil several conditions to haggle an invite to the European Union's free-for-all house party – the Schengen Zone – thereafter.

Phrasebooks, a taste for strange cheeses and basic differentiation of euro coins are enough to surf Europe now, but Brits are going to find their access to the continent heavily restricted after Brexit.

The worst news is it may yet take both sides of politicians in the Brexit negotiations another 18 months to decide who can live where and how.

Britain has suggested two-to-five-year residency terms for EU residents in the UK after Brexit; voices in the EU have said Brits may be able to obtain residency in one EU country but without the Schengen privileges of moving without a visa or a passport to another.

Some EU countries however are already actively recruiting British citizens. Estonia has launched How To Stay In, a website geared towards Brits with information on how to establish an EU company through the country's e-residence programme.

“The Brexit referendum led to a sharp increase in applications for e-Residency from the UK, with twice as much demand as before the referendum,” Arnaud Castaignet, head of Estonia's E-Residency Programme, told The Local. “We currently have 1,307 e-residents from the UK,” adds Castaignet. “We surpassed 1,000 in the week that Article 50 was triggered.”

The British e-residents have so far established 103 companies in Estonia without having to relocate from the UK. Estonia's e-residency programme offers global citizens the opportunity to set up a company online for €100 and benefit from being able to trade as an EU company.

Online residency will help your goods reach Europe, but you yourself will only be there virtually as the program does not entail the right to actually live in Estonia.

Malta will however actually let you move to its warm Mediterranean shores, albeit for an annual fee of €15,000, or just over €41 per day.

Anybody wanting to move to the archipelago will need to either rent a place for a minimal annual value of €8,750 or buy an outright property at no less than €220,000, according to Zentura Ltd, a consultancy firm that facilitates applications for Maltese residency and citizenship.

If you have the money and are willing to spend it, most countries will offer residency, or even citizenship, as part of an investor program. Cyprus has allegedly been selling passports to pretty much anyone who can afford one, reported The Guardian, while Greece, Bulgaria, Croatia and Romania will all be happy to play host if you buy a house worth at least €250,000.

Or you could make a hefty investment; buy a second division football club or fund an innovative chain of hairdressers in your country of choice.

Don't fancy the hefty price tag or the bad hair days? Germany will give you a passport for a mere €255. But only once you've lived in the country for eight years.

Can Brexit help Sweden discover the next PayPal or TransferWise?

Sweden hopes to cash in on the fintech exodus from London.

One country's loss is another's gain. Stockholm has set its sights on picking up some of the fintech business that experts predict London is set to lose.

Cobcoe's report outlines several ‘services' sectors threatened by Brexit. Financial services, as well as back office data, call centres and data storage are key areas where the UK will have to realign fast or risk seeing key companies relocate to Europe from hubs such as London and Cambridge.

Fintech, or technology and software used to enable banking and financial services, is another. The UK is still the leader in the sector in 2017, according to a report by CBS Insights. But the same report warns that “fintech insurgents” could cash in on the UK's loss, with Sweden and France most poised to inherit sections of the financial technology market.

The Stockholm Fintech Hub is one such nascent player looking to wrestle business away from the UK in the highly-profitable start up sector. The 226 organizations in the Swedish fintech sector have attracted more than €750 million in funding already and employ more than 3,000 people, according to a recent post by Matthew Argent, founder of the Stockholm Fintech Hub.

“I have witnessed a seismic shift in activity within fintech in Sweden since we launched in February 2017,” writes Argent. “The country's tech unicorns are putting the country on the map as a viable destination for investment and this is influencing the fintech sector.”

Sum Up ready to pack up and leave London

Britain's fintech sector is nervous and some of the leading figures have already decided to relocate.

The founder of Sum Up, Daniel Klein, told Munich's Süddeutsche Zeitung he would be relocating the financial services provider from London to “elsewhere” because of fears about Brexit.

Sum Up, which employs more than 500 people, creates technology to authenticate chip card transactions (Visa, Mastercard etc). The company is UK-based and regulated by the Financial Conduct Authority (FCA).

It operates in 31 countries and fears that with the UK out of the single market, it could lose its automatic access to many European markets and become a victim of regulatory divergence.

While London remains the fintech capital of Europe, with more than 1 billion invested into the sector alone in 2017, some of the 1600 or so companies that employ 60,000 people – according to the report – are beginning to fret about Brexit.

David Thomas of Cobcoe says talent must be protected in the Brexit negotiations because “if Europe loses this incredible pool of talent the damage to the economy is going to be immense.”

German trade guru: “I doubt Brexit will ever happen”

If a German business expert is to be believed, then there'll be no need to learn Maltese or file tax returns in Estonian to live on the Costa Brava.

“Agh, Brexit, it is all verbal so far; I doubt it will ever actually happen,” said Anton Börner, president of BGA, The Federation of German Wholesale, Foreign Trade and Services, calling a hard Brexit's bluff in an interview with German daily Die Welt.

Börner based his doubts on the endurance of the UK economy and the resistance of stock markets to Brexit speculation.

“Market leaders assume that Brexit takes place in politicians' speeches, but not in reality,” added Börner. “Whatever comes will be strongly cushioned in order not to overwhelm the economy.”

British Ambassador slammed by Brits in France over Brexit

The British Ambassador to France has been on the sharp end of criticism from UK citizens in the country, who aren't buying his reassurances over Brexit.

British envoy Edward Llewelyn posted a video on the embassy's Facebook page in an attempt to update Brits in France on the ongoing Brexit negotiations and to stress there was good news to report back on the progress being made.

But the reaction was overwhelmingly hostile:

“The intransigence of the UK government is making people ill, we are being treated like bargaining chips,” one angry Brit commented, The Local France writes.

If you want to give your local British Ambassador a grilling, see the listings below for Embassy Brexit events (but before you get too angry, remember that diplomats are only doing the government's bidding!).

Brexit news on The Local this week:

France is cutting taxes on bankers to woo companies leaving the UK: France cuts taxes on bankers to woo Britain's Brexit leavers.

US bank Citi has applied for a licence in France for activities it plans to move out of the UK post-Brexit, according to an executive.

Anglo-Swedish drug maker AstraZeneca has started making preliminary preparations for moving some operations out of the UK in the event of a hard Brexit, chairman Leif Johansson said this week.

Frankfurt could be one of the big winners of Brexit. We've put together some interesting facts about Germany's financial capital: 10 facts you probably didn't know about Frankfurt (even if you live there)

Brexit events to watch

Belgium

Brussels
Wednesday October 25th at 18:00-21:30
Practical Brexit II. A meeting to enable individuals to obtain some guidance on aspects of Brexit. Speakers include UK Ambassador Alison Rose
Language: English
Location: ING Auditorium, Avenue Marnixlaan 24, 1000 Brussels.
Organizers: Brussels British Community Association & British Chamber of Commerce in Belgium

Germany

Badan Badan
Thursday October 19th at 18:30-22:00Brexit – Ignorieren oder Reagieren (Brexit – Ignore or React?)
Language: German
Location: Hotel am Froschbächel, Henri-Dunant-Platz 2, 77815 Bühl.
Organizer: Small businesses association of the CDU / CSU (political organisation – centre right).
More info

Cologne
Friday November 17th, 18:00
Europäische Außen- und Sicherheitspolitik – nach dem Brexit (European Foreign and Security Policy, after Brexit)
Language: German
Location. Europäisches Dokumentationszentrum USB, Universitätsstr. 33, 50931 Köln
Organizer: Europe Direct, Köln.
More info

Königswinter
October 12th at 19:00–20:30
Brexit means Brexit, a lecture in cooperation with the association for the partnership between Königswinter and North-East Lincolnshire.
Language: German
Location: VHS Siebengebirge (College), Königswinter
Organizer: VHS Siebengebirge
More info

Sweden

Örebro
October 25th, 15:00
How you're affected by Brexit, a seminar on how companies with relations with the UK will be affected by Britain leaving the EU.
Location: PwC, Fabriksgatan 47, Örebro
Language: English
Organizer: PwC Örebro
More info

Netherlands

Various Locations
Open Forums for British nationals in the Netherlands, hosted by the British Embassy:
Language: English
Organizer: British Embassy, The Hague.

Rotterdam – October 5th
More info

Maastricht – October 10th
More info

Eindhoven – October 10th
More info

Arnhem/Oosterbeek – October 19th
More info

Amsterdam – October 24th
More info

Norway

Stavanger
November 15th, 8:30am
Global morgen: Brexit. A talk by Espen Aas, NRK's London correspondent.
Location: Sølvberget, Stavanger kulturhus, Sølvberggata 2, Stavanger.
Language: Norwegian.
Organizer: Internasjonalt Kulturnettverk, Sølvberget
More info

Denmark

Copenhagen
November 23rd, 17:00
EU, Europa, Alternativet, UK Og Brexit (The EU, Europe, Alternativet, the UK and Brexit)
Language: Danish
Organizer: Alternativet (The Alternative, a green political party)
More info

Hobro
December 5th, 19:00
Brexit v Casper Pedersen
Language: Danish
Organizer: VU (Venstres Ungdom) Mariagerfjord (local youth section of the Danish Liberal Party)
More info

Do you know of a Brexit related event in the EU 27 that The Local should know about? E-mail [email protected].

If you would like to continue receiving the Brexit newsletter please sign up here

TRAVEL NEWS

EES: Could the launch of Europe’s new border system be delayed again?

After being postponed several times already Europe's new biometric Entry/Exit border system (EES) is set to be rolled out in October, but with fears of lengthy queues, problems with a new app and demands for more time, could it be postponed again?

EES: Could the launch of Europe's new border system be delayed again?

Could the entry into operation of the EU entry/exit system (EES), the new biometric passport checks for non-EU citizens at the Schengen area’s external borders, be delayed yet again?

Originally planned for May 2022, EES has already been postponed many times.

The current launch date, set for October 2024, was chosen to avoid periods of peak traffic and France in particular had requested to avoid it being launched until after the Paris Olympics this summer.

When asked to confirm the October start date this week a spokesperson for the EU’s Commission told The Local that the “roadmap” for the EES IT system foresees it will be ready for Autumn 2024. But the actual start date, in other words, the day when passengers will have to register, would be confirmed nearer the time.

The spokesperson said: “The exact date will be determined by the European Commission and announced on the EES official website well in time for the start of operations.”

READ ALSO: Your key questions answered about Europe’s new EES passport checks

But the reasons are adding up to suggest an October start date is optimistic, perhaps even unlikely.

In the annual report on the ‘State of Schengen’ published last week, the European Commission spelt out that severe challenges remain if member states are to be ready on time.

“In 2023, efforts to ensure the entry into operation of the Entry-Exit System in the autumn of 2024 were accelerated… While important progress has been made across the Schengen area, some Member States are still falling behind, notably regarding the effective equipment of border crossing points. The Commission calls on all Member States to urgently accelerate preparations to ensure the timely implementation of the system…”

A map in the report shows that preparation is still “in progress” in 13 Schengen area countries, including Germany, Norway and Switzerland. “Outstanding issues” still impact Portugal, Malta and Bulgaria.

The state of play for the preparations for EES across EU and Schengen states. Image: European Commission.

There are also reports that EU heavyweight Germany is trying to persuade Brussels to delay.

Matthias Monroy, editor of the German civil rights journal Bürgerrechte & Polizei/CILIP claimed on his website that “the German government is lobbying in Brussels to postpone the date once again, as otherwise the German tests of the EES cannot be completed in full. Other EU countries are also behind schedule, with only eight of them having reported successful integration.”

Even on a French government website it talks of EES being rolled out some time “between the end of 2024 and 2025” rather than stating October 2024.

And according to recent media reports, French airports have been advised to be ready for November 6th, rather than October. 

READ ALSO: EES and Etias – what are the big upcoming travel changes in Europe?

A planned EU app, believed to be essential to the smooth operation of EES because it would allow non-EU visitors to register in advance of travel will not be ready, Gwendoline Cazenave, Managing Director of Eurostar International, the company operating train services via the Channel Tunnel, has told the BBC. The EU however insists the app does not need to be up and running before EES is introduced.

In the UK, which will be heavily impacted by EES due to the fact it is no longer in the EU and so British travellers are no longer EU citizens, the House of Commons European scrutiny committee is conducting an inquiry on the potential disruption the introduction of the EES will cause at the border.

Several respondents have recently raised the alarm about the possible delays the system could cause, especially at the UK-France border, which is used by millions of passengers each year who head to France and other countries across Europe.

Ashford Borough Council in Kent has warned of the possibility of more than 14 hours queues to reach the Port of Dover, which has already been struggling increased checked after Brexit.

The BBC reported that back in March, a P&O Ferries director said the IT system should be delayed again.

Airlines have also complained about the fact pre-travel EES requirements would make last minute bookings impossible.

The Union des Aéroports Français (UAF), which represents airports in France, has simply said more time is needed.

In other words, it would be little surprise if the roll out was delayed again beyond October 2024.

But the Commission spokesperson told The Local that “the timeline for the entry into operation of the EES took into account all the necessary activities to be performed by all relevant stakeholders to ensure a timely entry into operation. 

“The Commission is working very closely with eu-Lisa [the EU agency in charge of the IT system], the Member States and carriers to ensure that everything is ready for the timely and successful launch of the Entry Exit System.

“The roadmap for the delivery of the new IT architecture foresees that the Entry/Exit system will be ready to enter into operation in Autumn 2024.”

New digital border

The EES is a digital system to register travellers from non-EU countries when they cross a border in or out of the Schengen area, the travel-free area. It will be deployed in 29 countries across Europe including 25 EU states plus Norway, Switzerland, Iceland and Liechtenstein. Ireland and Cyprus are the only EU members who won’t apply the EES system.

It doesn’t apply to non-EU nationals who are legally resident in an EU/Schengen area country or those with dual nationality of an EU /Schengen county. The system was designed to increase security and to ensure that non-EU nationals visiting the Schengen area short-term do not stay more than 90 days in any 180-day period.

Instead of having the passport stamped, travellers will have to scan it at self-service kiosks before crossing the border. However, fingerprints and a photo will have to be registered in front of a guard at the first crossing and there are huge concerns the extra time needed could generate long queues in the UK, where there are juxtaposed border checks with the EU.

Preparations are ongoing throughout Europe and some countries have made good progress.

In France, Getlink, the operator of the Channel Tunnel, has recently reported that new EES infrastructure is finished at its French terminal of Coquelles, which will allow travellers to register their biometric data while travelling.

Eurostar is also installing 49 kiosks in stations for the registration of passengers. But the Union des Aéroports Français (UAF), which represents airports in France, said more time is needed.

Exempted

Meanwhile, the Polish government has urged UK citizens who are beneficiaries of the EU-UK Withdrawal Agreement to get a residence permit “in the context of EES/ETIAS”, even though there was not such an obligation to stay legally in Poland post-Brexit.

“Having such a document is beneficial as it will exempt from future Entry/Exit System (EES) registration when crossing external borders and from the need to obtain an ETIAS travel permit in relation to short-term travel to EU/Schengen countries,” the government page says.

This article as published in collaboration with Europe Street news.

SHOW COMMENTS