Proposal to ease access for non-EU expats in the European Union

Non-EU expats do not currently enjoy full freedom of movement 

Currently, a non-EU expat must have lived continuously for 5 years in one member state to be considered a long-term resident of only that state. They must also not have been abroad for more than 6 consecutive months and more than 10 months out of these 5 years. In their application, they need to show proof of financial stability (regular income over the past 5 years and savings), present a health insurance plan, as well as meet integration conditions like proof of language proficiency and passing a test about the law and culture of the host EU country.

In theory, becoming long-term residents gives non-EU expats the same freedom of movement as intra-EU expats and EU citizens. In practice, however, it's far more complicated. This is because each member state has its own specific rules for work permits and residency. In many EU countries, before a company can hire a non-EU citizen, it needs to prove to the state that there wasn't any equally competent local or EU citizen available for this position. This is called a labor market test. 

Sometimes, this test and other bureaucratic procedures are so much of a hassle that companies prefer making non-EU applicants ineligible from the start for certain vacancies – even if they already live in another EU country. This robs both workers of opportunities and companies of workers, which is worse in times of labor shortage. Many European countries have been suffering from a labor shortage since the Covid pandemic. Case in point, the Federal Labour Agency of Germany, the biggest economy of the EU, reported in late 2022 that 200 professions are suffering from a severe labor shortage. These professions range from IT specialists to truck drivers to nurses.

Another problem is how moving around Europe is detrimental to a non-EU expat's chances of getting long-term resident status. If they move to another EU state for an internship, course or vocational training that lasts a few months, that hurts their record of continuous stay in their primary EU country. The business and cultural exchange between EU countries is strong, so it's inevitable that great short-term opportunities in other member states pop up for expats, and that shouldn't penalize their residency status. 

All of the above have been problems for expats from other continents for a long time, but since 2016, they've also become problems for British expats. As the terms of the Brexit deal got finalized over the last seven years, British expats around Europe found themselves stripped of rights that had been theirs for decades. Paying taxes, getting one's pension, and even driving in the EU have become more complicated for them. This is why some members of the European Parliament have now come up with a proposal to ease their residential situation.

The stay requirement might be reduced 5 to 3 years 

The main changes of a reform proposed by a group of members of the European Parliament (MEPs) are: 

• Reducing the number of years expats must have stayed in an EU country to be eligible to long-term resident status from 5 to 3 years
• Allowing the cumulation of the time they've spent in different EU countries. This way, an Indian expat who lived for 2 years in Ireland and 1 year in Portugal would be perfectly eligible for long-term resident status.
• Taking into account the time expats have spent as students, seasonal workers or asylum seekers in an EU member state. This will really help expats who first came to Europe to get a university education.
• Letting expats easily gain long-term resident status in a second EU country as long as they already have it in a first country. They will just need to present their residency card from the first country in the second country. They won't need to undergo a labor market test, present their proof of funds again, or retake a cultural integration test.
• Processing long-term resident applications within 60 days.
• Simplifying the requirements for health insurance and sufficient funds in the application
• Offering free language courses, at least of the beginner A1-A2 level, to prospective applicants who need to meet the cultural integration conditions of the application.
• Granting automatic long-term resident status to the dependent children of expats who get that status themselves.

The European Parliament's Committee on Civil Liberties, Justice and Home Affairs voted in support of a draft text of this reform in March 2023. Damian Boeselager, a German MEP of the Greens/European Free Alliance group, is a major campaigner for this reform. He told the press, “To better attract and retain talented workers at all skill levels, we propose a portable EU long-term resident status with the right to move freely across Europe for work or studies. This right will allow migrants to travel and seek opportunities across Europe and fill in labor shortages where needed.”

The proposed reform still needs to be discussed and approved by the EU Council. It is where government ministers from each member country discuss, amend and adopt laws. Getting all of the ministers to agree to all these changes might be tricky. This is partly because anti-immigration sentiment is strong in some countries. But it's also because, as Boeselager says, governments might find it challenging to cross-check their documentation with each other. That can concern documentation about continuous stays and temporary absences if the expat lived in various EU countries. 

In any case, the EU Council will need to decide whether to fully accept, partially accept or fully reject this reform before June 2024, when the next European Parliament elections are scheduled to take place.