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BREXIT

German business losing patience with limping Brexit talks

With just under six months until Brexit day, German business is losing patience with negotiations ahead of a vital deadline, warning ever more stridently of the risks of a no-deal departure.

German business losing patience with limping Brexit talks
EU Brexit pointman Michel Barnier (R) talks with Britain's Brexit Minister Dominic Raab (2ndL) amid Brexit negotiations in Brussels, September 2018. Photo: AFP.

“Europe must stop a worst-case Brexit scenario,” Joachim Lang, director of the Federation of German Industry (BDI) said Tuesday, warning that “a separation of the UK from the EU without a departure or transitional agreement or clarification of the future relationship is still a possibility.”

At stake for Germany are some 50,000 jobs the BDI says depend directly on business with the UK.

In financial terms, Europe's largest economy sold 84.4 billion euros of exports to Britain in 2017, making the island nation its fifth-biggest customer, while importing 37.1 billion.

The scale means a no-deal Brexit would be “a disaster that would cause great difficulties for tens of thousands of firms and hundreds of thousands of workers on both sides of the English Channel,” Lang said.

Current talks aim to settle Britain's divorce issues and agree a “transition phase” to ease its departure by keeping it under EU law through 2020.

But while much is already agreed, negotiations have snagged on thorny issues like the Irish border that allow for little compromise and divide British PM Theresa May's majority.

An EU leaders' summit this week has been dubbed a “moment of truth”, as two sets of lawmakers — in Westminster and the European Parliament — must both green-light any deal and will need time to debate it before Brexit day on March 29.

Adding to the pressure, the European Commission said last week it was making plans to cope with a no-deal scenario.

'Will Brits be reasonable?'

Businesses on the front line of potential Brexit disruption mostly strike a less alarmist tone than the BDI chief.

“If Britain becomes a 'third country' (losing membership of the EU's single market) it's not a problem, we already work with 50 third countries,” said Samia Zimmerling, head of export administration at Delta Pronatura — a cleaning products maker with operations in both Germany and the UK.

But she lamented the drawn-out talks, which are delaying concrete adjustments companies must make to any new trade arrangements, like updating complex IT systems.

“We're waiting every day,” she said. “We don't have any faith in the British (government), they're just indecisive.”

Zimmerling and around 200 other businesspeople attended a Wednesday conference organised by Frankfurt's Chambers of Commerce and Industry (IHK), one of a string of events in economic centres around Germany.

Britain's departure has special significance for Frankfurt, which is both the centre of the powerhouse “Rhine-Main” region and a financial hub.

Bankers and local politicians hope to attract banking business from London following Brexit, with lobby group Frankfurt Main Finance last week tallying 26 financial firms that will transplant some operations.

But at Wednesday's meeting, experts from the finance ministry in Berlin and the customs service focused on explaining more prosaic issues to the gathered businesspeople.

Attempting to strike a bright tone and coax the odd laugh from the audience along the way, they delved into how to register for customs software or claim back taxes on goods exported outside the EU.

Higher barriers to trade “wouldn't be anything new to us as a company, although for me personally, yes,” said Thorsten Neubecker, a 30-year veteran of Germany-UK trucking at transport firm MOL Logistics.

“We're assuming that there will be this temporary two-year transition period, to give us time” to adapt, he added.

“Whether the Brits will be reasonable, whether Brussels will be, I don't know, we just have to hope.”

Alexander Schroeer of Cuta Solutions, a firm that advises other companies about international trade, was more pessimistic.

“There's a political discussion in England that has nothing to do with the agreement itself,” he complained.

“For me it's clear that there will be a hard Brexit.”

READ ALSO: 'Horror scenario': How Brexit could affect Germany

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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