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BREXIT: THE LAST CHANCE FOR EUROPE AND THE UNITED KINGDOM?

129

Following the usual bargaining, the Member

States settled on a period of seven years, which

left Britain more than satisfied.

In spite of the specificity of British benefit

payments, which are practically exclusive to the

UK, other countries such as Germany, Austria

and the Netherlands have also been requesting

measures to control both the spending gener-

ated by immigrant workers and the flow of

workers itself. The agreed formula seeks to fully

respect the right to freedom of movement, a

fundamental freedom of the EU, whose reform

in the treaties is simply unthinkable (article 45 of

the Treaty on the Functioning of the European

Union). However, doing so has required an in-

terpretation of the case law of the Court of

Justice (cases Dano and Alimanovic). Here we

should recall that article 21.1 of the Treaty on

European Union subjects the right of EU citizens

to freely reside in any other Member State to

the “limitations and conditions” established in

Directive 2004/38, which requires them to have

a job or sufficient resources and full medical in-

surance. As such, it is in line with EU law for a

Member State to restrict the provisions offered

to EU immigrants while they are looking for em-

ployment during the first five years of their resi-

dence, and if they do not have genuine ties to

the country (Mangas

op. cit.

). The UK has also

had to drop its plans to deport immigrants if

they do not represent a burden and do not af-

fect public order, safety or health. Nor can the

country unilaterally set a period of time for look-

ing for work, as Cameron had intended, since

this would require treaty change. In general

terms, in spite of its shades of grey, the agree-

ment makes it clear that restrictive measures

such as those demanded by the British

Eurosceptics cannot be applied unilaterally.

Cameron was less successful with his de-

mands regarding child benefits paid in respect

of children who are not resident in the UK.

Before the start of the Council, he had already

had to accept that child benefits should, at

most, be indexed to the value of payments in

the country where the children are resident. For

current immigrants, indexing with respect to the

real value, purchasing power or standard of liv-

ing in their country of origin will begin in 2020,

a date that has been interpreted as an act of

generosity by the UK. Under this agreement, the

British Exchequer will scarcely reduce spending

on child benefits and, given the complications

of implementing the new provision and the bu-

reaucracy involved in its management, it may

ultimately serve to increase costs from current

levels. The agreement also establishes that the

procedure will not apply to pensions. For other

types of work-related movement, such as pro-

fessional activities, in the event of exceptionally

large and prolonged inflows, there is an alert

and guarantee mechanism with restrictions on

payments for the first four years of residence to

be gradually authorised by the Council.

In short, an agreement whose objective is to

prevent EU immigrants in the UK from immedi-

ately accessing certain social benefits on the

same terms as British citizens affects the funda-

mental values of the European project, regard-

less of how well it is made to fit the law. Both

the underlying aim and the debate in the run-up

to the agreement were a direct attack on the

principles of the free movement of people and

non-discrimination, and this debate looks set to

continue at least until the referendum on 23

June 2016. The Council, and prior to this the

Commission, proved incapable of arguing that

these demands are based on unjustified preju-

dices since there is no exceptional migration cri-

sis in Britain that justifies them. Unemployment

in the UK is 5 % and the net balance of contri-

butions and income from this group to the ex-