BREXIT PRESENTATION AT KAMARES CLUB 7 March 2018 by the British High Commissioner Matthew Kidd, with Christina Smith and Louise Knight.
The meeting started with an introduction by John Merritt, Chairman of the KVHA. He thanked the committee and Marinos and his team at the Club for the work they had done. John Merritt welcomed Matthew Kidd, Christina Smith and Louise Knight from the British High Commission, Paris Gabriel from Leptos, Areti Pieridou, the Chairperson of Tala Council, and Cathi Delaney from Tala Council.
Mr Kidd thanked attendees for the opportunity to see the Club in daylight as his previous visits there had always been under cover of darkness! He also said he was daunted by the attendance [around 200] and hoped that everyone would find the visit worthwhile.
He advised that he would outline the big picture of the Brexit process and then move on to questions from the floor.
Brexit negotiations were basically in three parts, all to be fitted into a 2 year period. Complex and elaborate negotiations are involved. Initially the UK gave notice of their withdrawal from the EU and the Commission said they would provide the structure. The UK complicated the process by having a General Election which delayed matters a little.
By the summer break, agreement should have been reached regarding two stages of negotiation:
- - First, agreement on the ‘divorce’ part of the withdrawal.
- - Second, the future relationship between the UK and the EU to replace membership
Last autumn was spent discussing withdrawal:
1 Bill– how much the UK would have to pay to settle its obligations
2 2 What happens with the Irish border – it will become an EU external border but there is no appetite from anyone for Brexit to lead to a hard border, as there was prior to the Good Friday agreement
3 3 Citizens Rights – UK expats in EU member states and/or EU nationals living in the UK
4 4 Smaller issues
A decision was reached on the three main issues:
1 1 Bill– UK agreed on a list of elements in the settlement bill. Some will be due immediately. The UK will have to pay up to the end of the current budget cycle what was previously agreed. No other member state needs to fear that they will get less or pay more due to the UK withdrawal. A list of obligations due as a result of our past agreements was agreed, and agreement was reached regarding long-term commitments [contributions for Commission civil servants pensions, eg]. There are also loans given to third countries [eg Ukraine] and if they default member states have to pick up the tab so the UK has agreed to pay its share, if needed. The list of financial obligations is quite elaborate and lists what the UK will be responsible for and over what time period. It is difficult to put an exact figure as this will be affected by a lot of different factors, including how well the UK economy fares going forward, how long the civil servants will live, if a third country defaults on a loan, etc. It is estimated that the UK will pay €40bn over the next 30 odd years or so – approximately.
2 2 Ireland– there has been less progress. All share the goal of a soft border but this is difficult to organise as with a single market border/EU border, controls are to be expected. There is an agreement to use the established technology there is to try and manage the situation as far as possible and not allow border controls to be displaced in such a way as to create a division. There is still work to do on this.
3 3 Citizens Rights. The UK Government wants to protect their nationals and other Governments want to protect the rights of their nationals resident in the UK. Expats have acquired rights living in another member state at the time of Brexit, as have their children and any future children.
- -Healthcare – keep rights
- -Social Security – keep rights
- -Pensions – keep rights and will be index linked.
All agreed as part of the withdrawal deal.
4 4 Future Rights - there will then be discussion regarding any ‘future’ relationship with the EU.
For example voting rights, recognition of professional qualifications [those acquired and already recognised abroad continue to be valid] in Cyprus and across the EU. The ‘future’ has still to be discussed.
As regards the ‘future’ the Commission needs to design the future. 27 countries need to agree on how they see the relationship and then discuss and/or negotiate with the UK.
There is also the problem of how that relationship moves forward. There could be the situation that on 29 March 2019 there is one set of arrangements in place, and these all change on 30 March 2019 once the UK has left the EU. It is thought that an interim period will be required to allow everything to be put in place for the final ‘end state’. In around three weeks time, the EU meets again to discuss and hopefully agree the interim period.
By June the UK should have turned the withdrawal agreement into legal text which can be signed. There will then be a 9 month period for every remaining member of the EU to go through a ratification period. This 9 month period should help business to plan/organise their future.
By the end of March the ‘future’ should be discussed. The British Government has had a lot of internal discussion and if they can complete their discussions by the end of March they are not far behind the timescales of the EU. The UK want to have as much of an open trading environment with the EU/Rest of the World as is possible without being part of the EU single market. The discussions are wide-ranging and complex and there is much speculation but it is hoped that arrangements will be as flexible as possible so that they work for all in as many topics/areas as possible. There are also complications. Regarding withdrawal all 27 countries knew/agreed what they wanted. Regarding the ‘future’,unity may be harder to achieve. Net contributors will have a different perspective to net recipients. Agreement between all 27 will be difficult or complicated to achieve.
From an outsiders point of view, it is difficult to get a clear sense of what is happening. The position looks starker and more negative as each side uses the media to suit themselves. It is, however, recognised that all want to engage, discuss and reach compromises.
Cyprus is one of only two or three member states most affected/at risk if discussions go wrong. Cyprus and Ireland export more than 10% of their exports to the UK. Cyprus is worried what will happen with the City of London financial markets as they work closely with the City. There is also concern for their own nationals in the UK and for expats in Cyprus as the Cyprus Government wants to keep the expats visiting, living and contributing to their economy.
There are implications regarding education, qualifications, student fees, accessibility to student loans, and the Common Law system. The UK, Ireland, Cyprus and Malta use Common Law. EU law is often difficult to translate into a common law system so Ireland, Cyprus and Malta in particular need something compatible going forward.
There are also implications for the Bases on the island. The bases are not part of the EU but there are specific side agreements to enable parts of the EU to apply as if the Bases are part of the EU [for example farming subsidies for farmers whose land is on the Bases]. Work done on the Bases needs to continue as it is so discussion is underway between Cyprus and the EU.
Questions from the floor [answers in bold]:
1 1. I read in the Cyprus Mail about the Brexit talk by the High Commissioner and a few people have commented that it is not clear whether expats permanently resident in Cyprus have to convert their yellow slip [MEU1] to the MEU3 before the UK leaves the EU or after the UK leaves. There were various questions on this topic and the answers have been condensed into one area for ease of understanding.
It is important to ensure that you have your paperwork up to date before Brexit happens. The first step is the yellow slip [MEU1] if you do not have one. If you have the MEU1 then you will need to upgrade to the MEU3. The information that you will need is available on the website:
MEU1 - http://www.moi.gov.cy/moi/crmd/crmd.nsf/All/69E690A161D174D6C2257D2C0045750B?OpenDocument&highlight=MEU1
MEU1 - http://www.moi.gov.cy/moi/crmd/crmd.nsf/All/69E690A161D174D6C2257D2C0045750B?OpenDocument&highlight=MEU1
There is also information available on the EU site regarding permanent residency:
Please note that the High Commission has a meeting arranged shortly with the Immigration Department regarding procedure for upgrading to the MEU3 so it is recommended that you wait until further information is available on this issue and possibly save yourself a frustrating non-productive visit to the Immigration Department.
Please note that the issue of residency/registration is owned by the Cypriot Government.
Once you have your yellow slip [MEU1] then after 5 years residency you qualify for permanent residency and the MEU3. Proof will be needed that you have been here, resident for that period and immigration will decide what documentation you need to produce.
If you have an ARC stamp in your passport you need to convert this to an MEU1 and, if you have been here for 5 years, immediately apply for the MEU3.
Regarding Cypriot citizenship, you can apply for this once you have been here for 7 or more years and can prove the items stipulated by the Cypriot Government.
UK and Cyprus allow dual nationality and you can apply to be a Cypriot national once you have been here for 7 years. The criteria are stipulated on the Cypriot Government immigration website. To qualify you do not need to be Cypriot by descent.
Where people had stamps in their passports, those passports have since been renewed and replaced so those affected need to go to Immigration, and go through the MEU1 then MEU3 route. It is likely that you will have to produce all your documentation again.
There are reports that some branches of Immigration are saying they cannot do the upgrade to the MEU3 until after Brexit, or ‘not for the time being’. There is a meeting shortly to clarify this, agree that transfers can proceed and in what format the transfer will be [ie with or without appointment and paperwork needed].
MEU1 and MEU3 if you have lived here less than 5 years are your rights less? Once you have achieved your 5 years residency even if after Brexit, you will still be able to apply for the MEU3.
The most important thing is to ensure you have started the paperwork – it is recommended that you apply for the MEU1 if you do not already hold this.
2 Will the clause in the will of an expat that specifies that probate should follow English Law and not Cyprus Law be null and void if the expat acquired a Cypriot passport?
Re wills, it is important that as we all have individual financial obligations/intentions, specific professional advice is obtained.
3 3 Does Cyprus’s membership of the Commonwealth affect matters at all?
This affects Cypriots in the UK. Cypriots settling in the UK could, from the time of acquiring residency, vote. The Cyprus Government has never said to other Commonwealth members that they can have the same and there are, in fact, no benefits offered by the Cypriot Government [as far as is known] to members of the Commonwealth.
4 4 You have said that medical entitlement will continue. However, how will this work with the National Health system being introduced by the Cypriot Government?
Detailed implementation of the National Health System will be a priority and is intended to be in place for summer 2019. It is expected that EU citizens and expats following Brexit will be eligible for the system, subject to whatever conditions [and these will apply to Cypriots also] are imposed by the Cypriot Government.
5 Is there any guarantee that flights will not be interrupted following Brexit?
No reassurance can be given – this will form part of the ‘future relationship’ issues to be resolved shortly. There is no clarity available at the present time regarding aviation links.
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6 What is the situation regarding EHIC rights after Brexit?
If you have achieved state pension age, then you are eligible for a European Health Card. This entitles you to treatment, if needed, in other EU states. If you are an S1 form holder, then you can return to the UK for treatment. However, there are some who have EHICs and use them in Cyprus. If you are not an S1 form holder you cannot use the EHIC to get treatment in Cyprus – this is intended for use for tourists, ie temporary stays only.
At this stage, post Brexit the EHIC will be valid for use in other EU countries. If you have acquired the right to an EHIC card, then that right continues but this will be part of the future discussion.
7 In the EU do all nations have equal voting rights? Malta v Germany for example.
Some decisions are taken by consensus at member state level – in which case equal voting rights apply. Some decisions are made on the basis of Qualified Majority voting where the number of votes will depend on the size of the country. For the EU Parliament, voting rights are based on the number of MEP’s representing that country.
8 If we have not reached state pension age yet but will reach this after Brexit, what are our rights once we reach pension age?
If you are legally resident, as you attain state pension age, you get all the benefits.
9 If I reach pension age after Brexit will I receive incremental increases to my pension?
Yes
10 British Passports after March 2019 – will they be legal/valid?
British passports are based on the EU model. They will remain valid until their expiry date – and when your new passport is issued it may then look different to how it is now.
11 UK dual taxation agreements. Still valid with Cyprus?
Yes. This is not a function of EU membership.
A new dual taxation agreement comes into force later this year. No information is available at this stage re the new agreement but it is thought that the changes are not substantial and are likely to be focused on extreme circumstances that would not affect the vast majority of those at this meeting.
12 How will Brexit affect British citizens regarding immigration?
I can’t give a definite answer. Cyprus and 26 states need to decide how they want to treat UK passport holders. Cyprus has more flexibility as it is not part of Schengen. If a country is part of Schengen they could decide that visas are required. If the UK decides it must change the rules for EU nationals then that could affect the decision of other countries. It is hoped that the cost/inconvenience would deter countries from doing anything! It is likely that EU nationals in the UK will need to register with the UK Government, but details and further information is unknown at this stage.
13 Those with 7 plus years can consider dual nationality but can you comment on their tax status?
Discussion is underway but there is no complete answer. You need to be tax resident in one place, so tax residency does not depend upon nationality. Professional guidance needs to be obtained on this topic as everyone’s circumstances are different.
14 I have heard that you can be fined for not having a Cypriot driving licence. Is this true?
If you are resident, then there is an obligation to have a Cypriot driving licence and convert your British one to Cypriot if you have not already done so.
15 Regarding the new rules for registering clubs and associations, I am in the process of gathering all the documentation required by the Police. Is there a risk that they will now turn round and say that whilst previously they wanted copies of MEU1, they now require copies of MEU3?
MEU1 is still a valid document so there should not be a problem.
Some helpful websites and information regarding the British High Commission:
UK Consular in Cyprus – www.gov.uk/government/world/cyprus
Cyprus travel advice – https://www.gov.uk/foreign-travel-advice/cyprus
Travel advice By country – https://www.gov.uk/foreign-travel-advice
Foreign Office – www.facebook.com/foreignoffice
Overseas Passports – www.gov.uk/overseas-passports
Emergency travel documents – www.gov.uk/emergency-travel-document
All UK Govt services & info – www.gov.uk/
Republic of Cyprus Civil Registry and Migration Dept – http://www.moi.gov.cy/moi/CRMD/crmd.nsf/index_en/index_en?OpenDocument
British High Commission
Alexander Pallis Street
PO Box 21978, Nicosia
1587 Cyprus
Tel: +357 22 861100 [24hr and emergencies]
Fax : +357 22 861200
Office Hours – 0730 to 14330 Monday to Friday
Consular email: Nicosia.consular@fco.gov.uk
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