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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

‘Ashamed, embarrassed, disappointed’ – How Brits in the EU feel about the UK

A new in-depth survey on British nationals living in the EU has revealed the impact that Brexit has had upon their lives, and their attitudes to their country of origin.

'Ashamed, embarrassed, disappointed' - How Brits in the EU feel about the UK

The study, conducted by academics at Lancaster and Birmingham universities, provides a snapshot of how Brits in the EU live – their age, family, work and education – and how they feel about the UK in the six years since the Brexit vote.

Unsurprisingly, it revealed that Brexit has had a major practical impact on the lives of Brits living in the EU – who are now subject to third-country rules and require residency cards or visas and face restrictions on voting and onward movement within the EU.

But the survey’s 1,328 respondents were also asked about their emotions towards the country of their birth.

Eighty percent of respondents said it had changed their feelings towards the UK.

A British woman living in Norway said she felt: “Deep, deep shame. Embarrassed to be British, ashamed that I didn’t try hard enough, or appreciate my EU citizenship.”

“Since Brexit I am disappointed in the UK. I am worried, and no longer feel like I have the same affinity for the country. It’s a shame because I love ‘home’ but the country feels so polarised,” added a British woman in her 30s living in Denmark.

An Austrian resident with dual British-Irish nationality said: “I feel disconnected, like it’s a completely different country from how I left it.

“So much so I feel more connected with my second nationality (Irish) despite the fact I never grew up in Ireland. It’s embarrassing what’s happened in the UK and what continues to happen. It’s like watching a house on fire from afar.”

The experience of living abroad during the pandemic also affected people’s feelings towards the UK, with 43 percent of people saying the UK’s handling of the Covid crisis affected their feelings towards the county.

A British woman in her 50s living in Spain said: “It was shambolic. Too late, too little, mixed messaging, lack of seriousness. So many deaths after what should have been a head start.”

A British man living in Greece described it simply as “a shit show”.

In addition to the Brexit effect, the survey also provided interesting and detailed data on the lives and profiles of Brits who live in the EU;

  • 69 percent had degree-level education
  • 77 percent worked in a professional or managerial role
  • 53 percent are of working age
  • 59 percent have been living in their country of residence for more than five years
  • 78 percent said it was very unlikely that they would move countries in the next five years 
  • The most common reasons for moving country were retirement (40 percent), family reasons (35 percent) and work (30 percent)

Almost all respondents said that Brexit had impacted their lives, with the loss of freedom of movement being the most common effect mentioned.

One man said: “My original plan (pre-2016) was to move to France on retirement, due in 2026. Brexit caused me to move sooner, in order to retain my European citizenship rights. The pandemic helped (indirectly) in that I got locked down in France in 2020, which enabled me to earn residence under the pre-Brexit rules. I had been talking to my employer about doing something similar before the pandemic broke.”

“I moved to France in 2020 in order to protect my right to live and work in France post-Brexit. My migration is 100 percent a result of Brexit,” said one American-British dual national.

Other respondents talked about the post-Brexit admin necessary to gain residency status in their country, financial losses due to the weakening of the pound against the euro and the loss on onward freedom of movement – meaning that Brits resident in one EU country no longer have the right to move to another.

The report also highlighted that only 60 percent of respondents had changed their legal status by security residency since Brexit.

For some Brits in the EU this is not necessary if they already have citizenship of their country of residence (or another EU country such as Ireland) but the report’s author highlighted that: “It may also offer an early indicator that within this population there are some who may find themselves without legal residence status, with consequences in the future for their right to residence, and access to healthcare, welfare and work (among other services).”

READ ALSO What to do if you have missed the Brexit deadline in France 

In total 42 percent of respondents were completely disenfranchised – the 15-year rule means they can no longer vote in the UK, while the loss of EU citizenship means that they cannot vote in European or local elections in their country of residence.

The British government has recently announced the ending of the 15-year rule, giving voting rights to all UK nationals, no matter how long they live outside the UK. 

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