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1 Explanation of the Flemish Framework Decree Context on 15 Explanation of the Flemish Framework Decree Context On 15 January, the British Parliament rejected the withdrawal agreement which was reached on 14 November 2018 between the United Kingdom and the European Union for the first time. PM May was sent back to the EU to renegotiate alternative arrangements for the backstop, the major stumbling block of the brexit agreement. The UK Government and the EU reached an agreement on an additional legal instrument that would be added to the Withdrawal Agreement, to address the concerns of MPs who had previously rejected the deal, in order to approve the deal. Unfortunately, this effort did not have the desired effect, and the agreement got rejected again by a large majority on the 12th of March. As long as there is no approved agreement between the UK and the EU the chance on a no- deal brexit remains, and the political circumstances of this week make this chance more realistic. A no-deal Brexit means that the UK becomes a third country overnight, and that for the application of the European, federal and Flemish regulations the regulations for third country nationals would have to be reverted to. This would have undesirable consequences: the general interest may be harmed, but also private interests of both British and Flemish citizens and businesses, and the smooth administrative handling of files may be compromised. Therefore, it is essential that the Union and its Member States prepare themselves for the possibility of the UK leaving the EU without an agreement. Flanders will therefore adopt a decree that ensures that the most serious shocks of a no-deal Brexit are mitigated. This decree provides for a transition period until 31 December 2020, allowing citizens, businesses and administrations to adapt to the new situation and allowing governments to conclude international agreements or make further arrangements. The basic principles of this decree are the following: 1. It does not prejudice European law or agreements at European level. 2. It offers UK citizens only temporarily and to a limited extent the same benefits as those resulting from the UK’s membership of the EU. 3. It ensures that the benefits offered to UK citizens are also offered by the UK to Flemish citizens (principle of reciprocity). 4. It aligns the measures with those taken by the federal government and the other Communities and Regions. Delegation to the Government of Flanders The essential elements that are provided for in case of a no-deal Brexit will be laid down by decree. In addition, the Government of Flanders will be authorised, if necessary, to limit or extend the validity period of the measures in the decree and to adapt their scope. This allows the Government of Flanders to respond to possible additional uncertainties that a no-deal Brexit may cause, to non-reciprocity from the UK or to other measures taken at European or bilateral level. The authorisation to the Government of Flanders to adjust the validity period or scope is only allowed if the adjustment is ratified by a decree within six months. This authorisation to the Government of Flanders is necessary because in the run-up to the elections, the Flemish Parliament will recess voluntarily on 25 April 2019 and cannot act as a legislator from that date until the new Parliament takes office. If regulatory action should be required during this period after all, the Government of Flanders will be able to do what is necessary. 1 Entry into force of the decree The decree will only enter into force if the United Kingdom withdraws from the European Union without concluding an agreement (a no-deal Brexit). The date of entry into force is the date of the UK's withdrawal from the EU. In principle, this will be 29 March 2019, but if the negotiations under Art. 50 are extended, this can also be a later date. The provisions in the decree are intended as transitional measures and are therefore temporary in nature. The decree’s expiry date is in principle 31 December 2020. However, since the principle of reciprocity is assumed, the Government of Flanders is empowered to ensure that the transitional measures apply to the extent and for as long as the United Kingdom applies similar measures. The validity period can therefore be adjusted. Areas covered by the decree The decree includes provisions on taxation, integration and civic integration policy, economic migration, social affairs, education and personnel. The changes provided for by the decree are shown below for each area. 1. Taxation For the application of certain rates, taxation elements, reductions, exemptions or procedures, some provisions in the Flemish Tax Code, regional personal income tax and other regional taxes refer to the localisation of one or more determining elements. For transactions with cross- border elements, a distinction is made in the current regulations according to whether these elements are localised within or outside the European Economic Area. After Brexit, elements localised in the UK would fall outside the European Economic Area. In the interests of legal certainty, simplicity and equal rights for all taxpayers, the decree provides that for the application of the regulations concerning taxes collected by or for the Flemish Region, the UK is still considered to be part of the EU until assessment year 2020. This will ensure that during the transition period the situation for taxpayers will remain the same as before the date of execution of Brexit. 2. Integration and civic integration policy British nationals and certain family members who wish to settle in a Flemish municipality after Brexit from abroad would be obliged to enter a civic integration programme according current regulations. In addition, British nationals and certain family members, who are already registered in the national register in a Brussels or Walloon municipality before the date of execution of Brexit and who after Brexit (within 5 years after the first registration in Belgium) register in the national register in a Flemish municipality, would in principle also be obliged to enter a civic integration programme. For other relevant categories (i.e. British nationals already registered in a Flemish Community before the date of withdrawal or British nationals wishing to settle in a Flemish municipality after the withdrawal date but who were already registered in Wallonia or Brussels for a period longer than five years before the withdrawal date) no such obligation would apply. This decree provides for an exemption from the civic integration obligation for British citizens and their family members who register in the national register in a Flemish municipality during the transition period. For British nationals and their family members who are already living in Wallonia or Brussels before the day the UK withdraws from the EU, this measure gives certainty as to their rights and obligations. In addition, this transitional measure gives the Flemish Agency for Integration and Civic Integration the opportunity to fully 2 prepare operationally for the influx of new British citizens after the end of the transition period, who will be obliged to enter a civic integration programme. 3. Economic migration United Kingdom nationals will be third-country nationals from the date on which the United Kingdom leaves the Union without agreement. In principle, they would have to apply for a work permit or professional card after this date if they wish to be employed or carry out self- employed activities in Flanders. The decree foresees a provision which exempts UK nationals who wish to pursue economic activities on the territory of the Flemish Region after brexit from a work permit or professional card during the transition period, provided their performance is limited to a maximum of ninety days. If their performance exceeds the maximum of ninety days, UK nationals will have to request a work permit or professional card, according to the procedure for third country nationals. However, an accelerated procedure will then be provided. UK nationals that are already living and working in Flanders before the withdrawal date will be protected by the federal brexit law. This law provides that these UK nationals remain their right of residence after the withdrawal date until the end of the transition period. The right to work automatically stems from this right of residence, and therefore no extra measures are needed on the Flemish level regarding economic migration for UK nationals that are already living and working in Belgium before brexit. 4. Social affairs: Coordination of the social security systems In the event of a no-deal Brexit, the European coordination rules on social security would lapse after the date of withdrawal. This would have a major impact on social security in Belgium, as the existing rules on the aggregation of insurance periods, the exportability of benefits and the assumption of certain risks will no longer be in force in relations with the UK. This decree provides for the further application of the coordination rules to be ensured in order to avoid that many people end up in a problematic legal and financial situation overnight. For the application of the European social security systems in the branches of social security that fall within Flanders’ competence, the UK is assimilated to an EU Member State until the end of 2020. Family benefits (start amounts, selective participation allowances etc.), Flemish social protection and assistance from the Flemish Agency for Persons with Disabilities will therefore be granted to citizens in the same way as before Brexit until 31 December 2020. For the social security branches covered by the coordination regulations that fall within the competence of the federal government, parallel provisions are laid down in a federal law. A prerequisite for being able to continue this coordination, is to obtain cooperation from the British institutions.
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