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European stock markets rally on Brexit deal, Italy budget hopes

European stock markets rallied Monday after Britain sealed a Brexit deal with the EU and as Italy said it could cut its budget deficit.

Published: 26 November 2018 16:39 CET
European stock markets rally on Brexit deal, Italy budget hopes
Italy's Prime Minister Giuseppe Conte arrives at a special meeting of the European Council to endorse the draft Brexit withdrawal agreement in Brussels on November 25, 2018. Photo: Philippe Lopez / AF

The euro rose against the dollar but was down versus sterling.

Oil prices rebounded meanwhile, after slumping Friday to the lowest levels in more than one year.

Bitcoin extended its slide, dropping under $4,000 to $3,675.44 — the lowest level for 14 months.

“Italian stocks have been the outperformer in Europe… on reports that the government may consider reducing its deficit target in a bid to avert a disciplinary procedure in Brussels and a backlash in the markets,” noted Craig Erlam, senior market analyst at Oanda trading group.

“The pound is also a little higher… after (British Prime Minister) Theresa May overcame the first, and smallest, hurdle to her Brexit deal getting over the line.”

May convened her cabinet and will update Britain's parliament on the newly-agreed Brexit deal Monday, as she begins the tricky task of selling the plan to her sceptical country.

In Rome, Italy's populist government appears open to reducing its draft budget deficit, fuelling  a surge in the Milan stock market on hopes Rome could ease a stand-off with EU officials in Brussels.

Around 1430 GMT, Milan's FTSE MIB was up 2.5 percent compared with the close on Friday. London's FTSE 100 gained 0.8 percent.

Most Asian stock markets closed higher as investors tentatively picked up cheap stocks, with focus on an expected meeting between US President Donald Trump and his Chinese counterpart Xi Jinping at the weekend that will be watched for signs of a softening in the China-US trade war.

Those gains came despite more selling of shares in Asian energy firms following another collapse in oil prices Friday.

Wall Street also pushed higher at the opening bell, with the Dow climbing 0.6 percent.

The more positive mood comes at the start of a week set to include a speech by Federal Reserve boss Jerome Powell and the release of the bank's last policy meeting minutes, before culminating in a G20 gathering in Buenos Aires.

While the summit will focus on several global issues, the meeting between Trump and Xi will get the most attention, with the economic superpowers engaged in a trade war just as global growth starts to stutter.

Expectations for a deal to end the standoff are low, however.

Oil prices enjoyed a bounce but remain well beaten down after Friday's hammering, which saw WTI sink 7.7 percent and Brent lose more than six percent.

The commodity has plunged by about a third in value from four-year highs in early October owing to a range of issues, including a global economic slowdown, the trade row, rising crude supplies, softer-than-expected US sanctions on Iran, stuttering business activity in China and a stronger dollar.

All eyes are now on a meeting of the Organization of the Petroleum Exporting Countries on December 6 to see if the cartel will cut output.

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BREXIT

Will Brits in Italy face travel problems under new EES passport system?

The EU's new Entry & Exit System (EES) of enhanced passport controls is due to come into force later this year, but will this create more headaches for non-EU nationals who need to prove their Italian residency rights?

Published: 30 April 2024 16:36 CEST
Updated: 4 May 2024 08:15 CEST
Will Brits in Italy face travel problems under new EES passport system?

Currently scheduled to start in autumn 2024 (unless it’s delayed again, which is possible) the EU’s new Entry & Exit System is an enhanced passport check at external EU borders.

You can find a full explanation of the new system and what it means for travellers HERE.

Those crossing an external EU or Schengen border for the first time will be required to complete EES ‘pre-registration’ formalities, including facial scan and fingerprinting.

Several groups are exempt from EES, and one of them is non-EU nationals who have a residency permit or long-stay visa for an EU country.

A European Commission spokesman told The Local: “Non-EU citizens residing in the EU are not in the scope of the EES and will not be subject to pre-enrollment of data in the EES via self-service systems. The use of automation remains under the responsibility of the Member States and its availability in border crossing points is not mandatory.

“When crossing the borders, holders of EU residence permits should be able to present to the border authorities their valid travel documents and residence permits.”

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

But there have understandably been questions about how this exemption will work in practice.

Most airports, ports or terminals have two passport queues – EU and non-EU. It remains unclear whether the non-EU queue will now have a separate section for those who are exempt from EES.

It appears that exempt groups will not be able to use the automated passport scanners – since those cannot scan additional documents like residency permits – but should instead use manned passport booths.

What does this mean for travel between Italy and the UK?

It seems that nothing will therefore change for those who already have to show their Italian residency documents along with their passport when travelling to and from the UK (or another non-EU country) in order to avoid having their passport incorrectly stamped.

UK citizens who were legally resident in Italy before the end of the Brexit transition period are in a somewhat unusual position, as Italy is one of a handful of “declaratory” countries in the EU where getting a post-Brexit residency card (Italy’s is known as the ‘carta di soggiorno‘) was optional, rather than compulsory.

The British government has long recommended that British nationals who were resident in Italy before Brexit should obtain the card as it’s the easiest way to prove residency rights and avoid delays at the border.

In practice, many of Italy’s British residents have since found that the post-Brexit residency card is also necessary in order to complete various bureaucratic procedures within Italy.

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

But will the EES system mean that the card now becomes a de facto requirement when travelling between Italy and the UK?

The British government has not issued any updated guidance on the matter in light of the introduction of EES, and the British Embassy in Rome did not immediately respond to a request for comment from The Local.

Although EES does not change any rules relating to residency or travel, it seems likely that it will be more hassle to travel without a ‘carta di soggiorno’ than it is now.

As always, our advice is that getting the card, if you haven’t already, will probably save you a considerable amount of time and trouble, both within Italy and when travelling.

You can find our full Q&A on EES HERE.

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