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BREXIT

EUROPEAN UNION

Europe’s leaders bicker as Brexit reality bites

The European Parliament's chief called on Sunday for Britain to begin proceedings to leave the EU at a summit this week, as Germany suggested the country should be given time to "reconsider".

Europe's leaders bicker as Brexit reality bites
"Remainers" ponder an uncertain future. Photo: AFP

Amid confusion and dissent over the timetable for any “Brexit”, Martin Schulz told German newspaper Bild am Sonntag that a period of limbo would “lead to even more insecurity and thus endanger jobs”.

“Hesitating simply to accommodate the party tactics of the British Conservatives hurts everyone,” Schulz, a German Social Democrat, said.

“That is why we expect the British government to now deliver. The summit on Tuesday is the right time.”

However German Chancellor Angela Merkel's chief of staff insisted there was no rush to show Britain the door.

“The political leadership in London should have the chance to reconsider once again the consequences of a withdrawal,” Peter Altmaier told the RND media group.

He noted that once Britain left the union, it would be a “serious turning point with many consequences”.

Altmaier had earlier told German public radio that he had “no indication” that British Prime Minister David Cameron would start the Brexit process Tuesday.

“I tend to think that the application will be filed in the coming weeks or months, possibly only by a new government,” he said.

After it has been formed, the new British government will “then sort itself out and, as the case may be, present its application. We should all wait calmly for that”.

However the four biggest groups in the European Parliament have also drawn up a draft resolution calling for Cameron to set the Brexit ball rolling on Tuesday, Germany's Frankfurter Allgemeine Sonntagszeitung reported.

This was crucial, the groups wrote, “to avoid damaging uncertainty for all and to preserve the integrity of the union”.

They added that “no new relationship of whatever kind between the United Kingdom and the EU can be agreed before (Britain's) exit accord has been completed”.

Cameron said Friday in the wake of the shock referendum outcome favouring Britain leaving the EU that he would resign his office by October and leave the Brexit negotiations to his successor.

To begin the withdrawal process, Britain must invoke Article 50 of the EU's Lisbon treaty, which has never been used before.The first step is to inform the European Council of member states, which sets the clock ticking on a two-year timetable of negotiations.

The EU will hold a summit in Brussels Tuesday and Wednesday to discuss the fallout from the British vote and the European Parliament will also hold a special session.

Foreign ministers from the EU's six founding states meeting in Berlin on Saturday urged Britain to begin the exit process “as soon as possible”.

Merkel, however, was more cautious, saying it was up to Britain to decide when to begin withdrawal proceedings, although they should not “drag on forever”.

“There is no reason to be nasty in the negotiations. We have to follow the rules of the game,” she said.

For members

BANKING

Banking giant Barclays to close all accounts of Brits living in Spain

UK nationals living in Spain have begun to receive letters from their bank telling them that their accounts will be closed, in an apparent post-Brexit change. Have you been affected?

Banking giant Barclays to close all accounts of Brits living in Spain

Customers of Barclays Bank who are living in Spain and other EU countries have been receiving letters telling them that their UK accounts will be closed by the end of the year. 

A number of readers of The Local’s network of news websites have contacted us to report receiving either letters or messages in their online banking telling them that their accounts would be closed because of their residency in Spain or in other countries in the EU.

A Barclays spokesperson told The Local: “As a ring fenced bank, our Barclays UK products are designed for customers within the UK.

“We will no longer be offering services to personal current account or savings customers (excluding ISAs) within the European Economic Area. We are contacting impacted customers to give them advance notice of this decision and outline the next steps they need to take.”  

Customers are being given six months to make alternative arrangements. The changes affect all personal current accounts or savings accounts, but do not affect ISAs, loans or mortgages.

During the Brexit transition period Barclays closed Barclaycard accounts of customers in Spain, but did not indicate any changes to standard bank accounts.

READ MORE: 

Around the same time several other British high street banks began closing accounts of British customers who live in the EU, although with the exception of Barclaycard customers in Spain who were largely spared.

Many UK nationals who live in Spain maintain at least one UK bank account – in addition to a Spanish account – sometimes just for savings but others use their accounts regularly to receive income such as pensions or income from rental property or – for remote workers – to receive income for work done in the UK.

Not having a UK bank account can make financial transactions in the UK more complicated or incur extra banking fees.

READ MORE: What are the best UK banks for Brits in Spain?

Since Brexit, the UK banking sector no longer has access to the ‘passporting’ system which allows banks to operate in multiple EU countries without having to apply for a separate banking licence for each country.

And it seems that many UK high street banks are deciding that the extra paperwork is not worth the hassle and are withdrawing completely from certain EU markets. 

When British banks began withdrawing services from customers in the EU back in 2020, a UK government spokesman told British newspaper The Times that “the provision of banking services is a commercial decision for firms based on a number of factors” so Brits in Spain probably shouldn’t hold their breath for any help from that direction.

READ ALSO: Premium Bond holders in Spain may have to cash in if no UK bank account

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