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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

For members

EES PASSPORT CHECKS

How will the new app for Europe’s EES border system work?

With Europe set to introduce its new Entry/Exit biometric border system (EES) in the autumn there has been much talk about the importance of a new app designed to help avoid delays. But how will it work and when will it be ready?

How will the new app for Europe's EES border system work?

When it comes into force the EU’s new digital border system known as EES will register the millions of annual entries and exits of non-EU citizens travelling to the EU/Schengen area, which will cover 29 European countries.

Under the EU Entry/Exit System (EES), non-EU residents who do not require a visa will have to register their biometric data in a database that will also capture each time they cross an external Schengen border.

Passports will no longer be manually stamped, but will be scanned. However, biometric data such as fingerprints and facial images will have to be registered in front of a guard when the non-EU traveller first crosses in to the EU/Schengen area.

Naturally there are concerns the extra time needed for this initial registration will cause long queues and tailbacks at the border.

To help alleviate those likely queues and prevent the subsequent frustration felt by travellers the EU is developing a new smartphone app.

READ ALSO: What will the EES passport system mean for foreigners living in Europe?

The importance of having a working app was summed up by Uku Särekanno, Deputy Executive Director of the EU border agency Frontex in a recent interview.

“Initially, the challenge with the EES will come down to the fact that travellers arriving in Europe will have to have their biographic and biometric data registered in the system – border guards will have to register four of their fingerprints and their facial image. This process will take time, and every second really matters at border crossing points – nobody wants to be stuck in a lengthy queue after a long trip.”

But there is confusion around what the app will actually be able to do, if it will help avoid delays and importantly when will it be available?

So here’s what we know so far.

Who is developing the app?

The EU border agency Frontex is currently developing the app. More precisely, Frontex is developing the back-end part of the app, which will be made available to Schengen countries.

“Frontex is currently developing a prototype of an app that will help speed up this process and allow travellers to share some of the information in advance. This is something we are working on to support the member states, although there is no legal requirement for us to do so,” Uku Särekanno said in the interview.

Will the 29 EES countries be forced to use the app?

No, it is understood that Frontex will make the app available on a voluntary basis. Each government will then decide if, when and where to use it, and develop the front-end part based on its own needs.

This point emerged at a meeting of the House of Commons European scrutiny committee, which is carrying out an inquiry on how EES will impact the UK.

What data will be registered via the app?

The Local asked the European Commission about this. A spokesperson however, said the Commission was not “in a position to disclose further information at this stage” but that travellers’ personal data “will be processed in compliance with the high data security and data protection standards set by EU legislation.”

According to the blog by Matthias Monroy, editor of the German civil rights journal Bürgerrechte & Polizei/CILIP the Frontex app will collect passengers’ name, date of birth, passport number, planned destination and length of stay, reason for travelling, the amount of cash they carry, the availability of a credit card and of a travel health insurance. The app could also allow to take facial images. It will then generate a QR code that travellers can present at border control.

This, however, does not change the fact that fingerprints and facial images will have to be registered in front of a guard at the first crossing into the Schengen area.

So given the need to register finger prints and facial images with a border guard, the question is how and if the app will help avoid those border queues?

When is the app going to be available?

The answer to perhaps the most important question is still unclear.

The Commissions spokesperson told The Local that the app “will be made available for Schengen countries as from the Entry/Exit System start of operations.” The planned launch date is currently October 6th, but there have been several delays in the past and may be another one.

The UK parliamentary committee heard that the prototype of the app should have been ready for EU member states in spring. Guy Opperman, Under-Secretary of State at the UK Department for Transport, said the app will not be available for testing until August “at best” and that the app will not be ready in time for October. The committee previously stated that the app might even be delayed until summer 2025.

Frontex’s Särekanno said in his interview: “Our aim is to have it ready by the end of the summer, so it can then be gradually integrated into national systems starting from early autumn”.

READ ALSO: How do the EES passport checks affect the 90-day rule?

Can the system be launched if the app is not ready?

Yes. The European Commission told The Local that “the availability of the mobile application is not a condition for the Entry/Exit System entry into operation or functioning of the system. The app is only a tool for pre-registration of certain types of data and the system can operate without this pre-registration.”

In addition, “the integration of this app at national level is to be decided by each Schengen country on a voluntary basis – as there is no legal obligation to make use of the app.”

And the UK’s transport under secretary Guy Opperman sounded a note of caution saying the app “is not going to be a panacea to fix all problems”.

When the app will be in use, will it be mandatory for travellers?

There is no indication that the app will become mandatory for those non-EU travellers who need to register for EES. But there will probably be advantages in using it, such as getting access to faster lanes.

As a reminder, non-EU citizens who are resident in the EU are excluded from the EES, as are those with dual nationality for a country using EES. Irish nationals are also exempt even though Ireland will not be using EES because it is not in the Schengen area.

Has the app been tested anywhere yet?

Frontex says the prototype of the app will be tested at Stockholm’s Arlanda Airport, in Sweden. Matthias Monroy’s website said it was tested last year at Munich Airport in Germany, as well as in Bulgaria and Gibraltar.

According to the German Federal Police, the blog reports, passengers were satisfied and felt “prepared for border control”.

This article is published in cooperation with Europe Street News.

 
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