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BREXIT

Brits in EU risk losing UK bank accounts ‘within weeks’

Some of Britain's biggest banks have begun contacting customers in European Union countries, warning them that their accounts will be closed down within weeks because the cost and complexity of operating without a continuation of pan-European banking rules is too much.

Brits in EU risk losing UK bank accounts 'within weeks'
Lloyds Bank expects to close at least 13,000 accounts. Photo: Lloyds Bank
According to a report in The Times, thousands of Britons who live in Europe face being stripped of their UK bank accounts and credit cards, because of the UK government's failure to agree rules for operating after Brexit. 
 
Each of the EU's 27 member states has different rules for cross-border bank accounts which will start to apply immediately the UK's transition period ends on 31st December 2020. 
 
“In some cases, continuing to serve customers would be incredibly complex, extremely expensive and very time-consuming, and simply would not make economic sense,” a source at one British bank told the newspaper. “This is passporting — this is the reality of Brexit.”
 
 
If a way is not found to continue pan-European banking rules, or passporting, UK banks will br breaking the law if they don't apply for new banking licenses in each European Union Country. 
 
 
Lloyds, Britain’s biggest banking group, began writing to customers in August, warning them that their bank accounts would  close down on December 31.
 
The bank estimates that 13,000 customers, including those based in Holland, Slovakia, Germany, Ireland, Italy and Portugal, would lose their accounts. 
 
“If customers have regular deposits into, or payments out of, their account, they will need to make other arrangements before their account is closed,” the bank said. 
 
Barclays and Coutts have also started contacting customers. 
 
“In light of the UK leaving the EU at the end of 2020, we continue to review the services we offer to customers within the European Economic Area (EEA), and any impacted customers will be contacted directly,” Barclays said in a statement. “The timings for account closure will depend on the type of product that a customer holds, but we will always give notice to customers.”
 
“In the event that no alternative to the European Economic Area passporting regime for financial services is agreed between the UK and EU, we have taken the difficult decision to withdraw from offering our services to clients who reside in the EEA,” Coutts said. 
 

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BREXIT

Reciprocal healthcare agreements between Spain and Gibraltar end

The Spanish government has confirmed that it will not extend its reciprocal healthcare agreements with Gibraltar, meaning that from July 1st 2022, it will come to an end.

Reciprocal healthcare agreements between Spain and Gibraltar end

When the UK left the EU on December 31st 2020, both sides agreed that the UK’s EHIC European healthcare cards could still be used until their expiry dates.

This card provided British travellers with free state-provided medical care in the EU in case of emergencies.

Beyond their five year period of validity, EHIC cards are no longer valid and travellers have to apply for the new Global Heath Insurance Card (GHIC) instead. 

Spain made a separate agreement with Gibraltar under its Royal Brexit Decree in which unilateral arrangements would be maintained in the territory and extended until June 30th 2022.

During the meeting of the Spanish Council of Ministers on Tuesday, the Spanish Government decided not to extend the agreement further, meaning that residents of Gibraltar will no longer be able to benefit from it.

In a statement the government of Gibraltar said: “It would have been HMGoG’s preference for these arrangements, which deeply affect citizens on either side of the border on matters as essential as healthcare, to have been maintained. Indeed, HMGoG was prepared to continue with them”.

“However, because reciprocity is a key element to these arrangements which cannot work without coordination and provisions for reimbursement of costs etc., HMGoG is left with no option but to discontinue them also in so far as treatment in Gibraltar is concerned,” it continued. 

What does this mean?

Gibraltar residents insured under Gibraltar’s Group Practice Medical Scheme will, after 30th June 2022, no longer be able to access free emergency healthcare in Spain during a temporary stay in the country. 

Those who are residents in Spain who travel over to Gibraltar will not have access to free healthcare on The Rock either. 

As a consequence, if a resident of Gibraltar falls ill or has an accident while over the border in Spain or the same for a Spanish resident in Gibraltar, they will have to pay for healthcare.

The government of Gibraltar is encouraging its citizens from July 1st 2022 to have appropriate travel insurance with medical cover each time they visit Spain.

This means that even those who are hopping over the border for few hours such as for a shopping trip or going out for dinner will have to make sure that they have adequate health insurance. 

“Where medical attention is required the costs incurred may be considerable, so you should ensure you have adequate insurance cover or alternatively the means to pay,” the Gibraltar government said in their statement.

  

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