Brexit

Hungarian students are looking for new destinations after Brexit

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Following Brexit, it could easily happen that those coming from the EU will spend two to three times as much on university and college education in the UK from the next school year as before. No wonder Hungarian students are choosing other European higher education institutions in search of alternatives.

Veronika, who is graduating this year from a reputable high school in Budapest, had a long desire to continue her studies in Scotland, where so far, education has been free for EU students. Her primary reasons include improving her English in an English-speaking country, and the simple fact that the cost of a Scottish education could be covered by the family budget, writes Index.hu. But Brexit happened, and Veronika’s original plans changed.

As she says, after the painful disappointment of the first emotional shock, the alternative choice finally came to Veronica. The target is now Ireland, where she wants to pursue the same field as in Scotland: Economics. This is fortunately available at several Irish universities. She will submit her application by the deadline of January 20, and then, based on the points obtained in the graduation exams, it will be determined in August whether the admission was successful.

Veronika is also one of the students who, as an EU citizen, can now continue to study in the UK under the same conditions as students from outside the EU before 31 December 2020. That is, 

Brexit will increase the price for future students in the UK. Instead of the current 9,250 pounds (more than 3.6 million forints), fees for EU students who would like to study in British higher education will increase to between 10 and 38 thousand pounds (about HUF 4-15 million) per year.

In addition to tuition fees that may double or triple, from the next school year, EU students will miss out on the opportunity to apply for reduced student loans previously available to them. This is a huge loss because many consider the British student loan scheme much more “friendly” than it is in Hungary since, previously, it covered 100% of students’ studies and was relatively easily accessible for everyone.

This previously relatively easily available loan covered virtually all the costs students studying in the UK paid for their studies. Although they had to apply for it, this mostly meant paperwork. Almost everyone received it, and it only had to be repaid when the student’s income reached a certain level, which was relatively high for a Hungarian, says Balázs Lévai, the co-founder and managing director of the Engame Academy, which helps secondary school students to study abroad.

In addition to the fact that Brexit complicates administration in the area, as Hungarian students have so far been able to study in the UK without a visa, at the end of the transition period, those coming for more than six months must apply for a student visa, which costs an additional £812 (approximately HUF 300 thousand) for them.

Although Hungarian students will be forced to pay international tuition fees instead of the British one from September, it is important to note that the 38,000-pound tuition fee is the top. The highest-priced courses are typically medical courses, for which Hungarian students have hardly ever applied. In most cases, UK universities will certainly not ask for this amount.

Many British higher education institutions are trying to find a solution.

The University of Essex or the University of Stirling, among others, have already announced their special scholarships for students from EU member states, which offer tuition reductions of up to £5,000 to £8,000.

British universities have been opposed to Brexit from the start, from which we can conclude that rescue solutions are being made for the future. It is possible that the private scholarship system will be much more prominent and will take over the role of public student loans. In the case of Master’s degrees in Great Britain, student loans can only be taken out from banks, Balázs Lévai says, outlining the possible scenarios. According to Balázs Lévai, after Brexit, indeed, many abandoned the plan to study in the UK, even though the entire admissions cycle is far from being over.

A typical alternative now is Ireland, although by far not the most popular as the admission requirements are rather strict. Among those with a stable knowledge of German, Austria and Germany, which provide free higher education, have been an evident goal for a long time, and they remain so. As for those with strong English speaking skills, the Netherlands is now the primary goal, adds the head of the Engame Academy.

The Netherlands could also be a financially attractive offer as the first year at local public universities costs a thousand, then two thousand euros for EU citizens – especially since the average Hungarian paid higher education courses also cost approximately as much. Not to mention that we can easily find strong, high-quality university courses in the Netherlands, all in a wide selection, also available in English.

At the same time, Denmark, Italy, France, Spain, and the Scandinavian countries can also expect a growing interest. After all, the only question left is what proportion of those wanting to study in Britain will now apply instead to Dutch and other European universities.

Brexit to influence higher education in Hungary

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It barely entered into effect, but Hungary can already feel the downside of Brexit. It seems that Hungarian students feel less attracted by the universities of the United Kingdom despite those being very popular in the past years – according to a brand-new representative survey made by Engame Akadémia.

As we wrote it last week, the Brexit deal is done and ready to enter into force. With the first day of the year, it is already causing turbulences, as expected. As the United Kingdom decided to withdraw from the Erasmus program, Hungarian students will need to look for other possibilities to study abroad. Alternatives can be those countries that also provide high-quality education but with much favourable financial conditions. 

In the 2019/2020 academic year, around 15 thousand Hungarian students studied in higher-education abroad, whereas, according to the Hungarian Central Statistical Office (KSH), 24 thousand people continued their studies outside of the country, 6% of the total number of those enrolled in the higher education system.

There are no statistics yet about this upcoming 2020/2021 academic year, but last year’s 4% increase in the number of students is expected to keep growing. We know the number of those who applied to higher education in Hungary in 202, and that can give us a bit of perspective, and that number shows a decrease. Almost 20 thousand fewer students decided to apply to a university in Hungary, which can also mean that a part of this was planning to study abroad – said Balázs Lévai, co-founder and manager of Engame Akadémia to Világgazdaság.hu.

Universities of Austria and Germany are among the most popular ones; however, the United Kingdom has produced an incredibly dynamic growth over the past years in terms of popularity in higher education. The past decade tripled the number of those students who wished to deepen their academic knowledge in a foreign university, which is not very surprising if we consider the prestige and standards of British universities.

Brexit, however, draws up a completely different image.

According to the British government’s decision, after 31st December 2020, the same conditions apply to students coming from the EU, and thus to Hungarian students, than those that apply to students coming from outside of the EU.

Among other things, this means that the current EU price of an academic year of 9250 pounds (roughly 3.6 million forints) will change to 10-38 thousand pounds (around 4-15 million forints) a year for those who would like to do their studies in the British higher education system starting from September. This can on its own double or even triple the prices. Balázs Lévai added that, however, there are already more and more universities that announce scholarships for EU students which can be kept closer to last year’s tariffs.

On the other hand, paperwork becomes more complicated and costly. Students who wish to stay for longer than half a year for an educational purpose will need a student visa which further increases expenditures by 812 pounds (300 thousand forints). Moreover, students arriving from the EU lose the possibility to ask for a student loan with favourable conditions.

According to the survey made by Engame Akadémia asking 156 students and 96 parents,

27.6% of students that previously considered applying to the United Kingdom will no longer do so, because of Brexit.

When it comes to solely parents, an even more significant proportion, 36.8% said that their children would not apply to the UK because of Brexit.

Balázs Lévai said that for those who wish to learn in English, the Netherlands could be an alternative and solution. According to statistics, the past five years produced a 20% increase in the number of Hungarian students studying at a Dutch university. He adds that because of Brexit, the popularity of those countries that offer the possibility for students to learn in their second language will grow. Austria and Germany still lead in this respect, but Italy, Spain, France and Scandinavian countries can expect a growing interest.

Read alsoNew Authority for EU Citizens’ Rights after Brexit

Important video message for British nationals living in Hungary – Watch here!

Paul Fox, British Ambassador to Hungary

For those eligible under the UK/EU Withdrawal Agreement, the Hungarian government has now opened the applications for British citizens and their family members to apply for residency.

The process is free and simplified, and you have until the end of 2021 to apply. In the meantime, existing documents remain valid. Everyone needs to apply, even if you already have a registration certificate or permanent residence card. For more information, please watch the message of Paul Fox, British Ambassador to Hungary.

For full details on applying, please see the website of the immigration authority HERE

For further information on the actions British citizens have to take, please check living in Hungary guide HERE

Read alsoWhy do more and more people move to Hungary?

New Authority for EU Citizens’ Rights after Brexit

The rights of millions of citizens from European communities who continue to live and work in the UK and Gibraltar are now protected by the Independent Monitoring Authority for the Citizens’ Rights Agreements (IMA), launched at the end of the Brexit transition period.

The IMA monitors UK public bodies to make sure they are upholding the rights of citizens. It reviews complaints and has powers to launch inquiries and take legal action.

Citizens have broadly the same rights as before Brexit, if they were resident in the UK by 31 December 2020 and if they register with the EU Settlement Scheme by 30 June 2021. The Withdrawal Agreement between the UK and EU broadly covers four areas:

  • Residency – The right to live in the UK and Gibraltar. 
  • Workers and self-employed – The right to work in the UK, including self-employed people, and frontier workers who live in the EU but work in the UK.
  • Recognition of professional qualifications The right for specified EU professionals, such as doctors, nurses and architects, to be recognised in the UK, if they have registered their qualifications by 31 December 2020. 
  • Social Security  The right to access housing, healthcare, education, benefits and other state services.

The right to equal treatment and the prohibition of discrimination on the grounds of nationality apply to all these rights. Reciprocal arrangements are in place for UK citizens resident in EU and EEA EFTA countries.

The IMA works closely with governments and parliaments in the UK and Gibraltar, as well as with advocacy groups, charities and regulatory bodies to reach as many citizens as possible and inform them of its role. Citizens’ complaints and intelligence received from representatives will play a crucial role in shining a light on the issues that most affect people’s daily lives.

Sir Ashley Fox, Chairman of the IMA said:

“People from the EU should have confidence to get on with their lives – safeguards are in place to protect them.

The IMA provides an extra level of assurance, on top of existing tribunal and ombudsman services, to expose and challenge patterns of discrimination. I’m proud we’re doing our bit to uphold the UK’s commitments to its citizens from the EU.”

Dr Kathryn Chamberlain, IMA Interim CEO said:

“Implementing rights won’t always be straightforward. Even well-meaning organisations may make mistakes or interpret law differently – that’s why a monitoring authority, independent of government, is essential.

“It’s my hope that most issues can be resolved quickly through working with public bodies. We will, however, use our legal powers whenever necessary to ensure the rights of citizens affected by the Withdrawal Agreement are being upheld.”

The IMA exists to tackle systemic issues, practices and behaviours that cause widespread or persistent infringements of rights, for the benefit of the whole EU community in the UK. This includes people who come from the 27 EU Member States as well as the EEA EFTA countries of Iceland, Liechtenstein and Norway.

Citizens’ complaints and intelligence received from representatives will play a crucial role in shining a light on the issues that most affect people’s daily lives. Inquiry reports will be published and annual reports made to Parliament via the Secretary of State for Justice.

The Migration Observatory at the University of Oxford estimates that

there are around 3.6 million EU-born migrants living in the UK, making up 5.5% of the UK population.

Poland is the top country of birth among those from the EU, followed by Romania and Ireland. ONS figures reveal the UK local authority areas with the highest numbers of EU nationals include London, the West Midlands and Greater Manchester.

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Read alsoWhat does the Brexit deal mean for Hungary from an economic point of view?

What does the Brexit deal mean for Hungary from an economic point of view?

VON DER LEYEN, Ursula; JOHNSON, Boris

It has already been 4 and a half years since, with the Brexit referendum, the country decided to leave the European Union; moreover, the transition period ends with the last day of this year, so dealing with the issue has been quite urgent for a while now. A week ago it seemed impossible that the two parties would reach an agreement before we enter 2021, but a Christmas miracle happened when, on the 24th, Boris Johnson announced on Twitter that “The deal is done.”

Boris Johnson
Boris Johnson –  Twitter

We already discussed that the United Kingdom and Hungary both aim to strengthen their ties in several sectors, such as security, education, and tourism. Details of the deal are extremely important as based on numbers, the UK is one of the most important economic partners of Hungary. So what will happen to British companies based in Hungary?

According to Péter Goreczky, a leading analyst of the Institute for Foreign Affairs and Trade (KK), 


“Even if there will be no comprehensive agreement on commerce between the EU and the UK, it is still very unlikely that British companies would leave Hungary. Nevertheless, without a doubt, there will be factors making the situation more complicated.”

Choosing Hungary as a destination to invest in was not solely based on the country’s EU membership. Accessibility to professionals, favourable operational costs, and the eco-system of industries all play an important role when it comes to a strategic decision of such magnitude. The investment itself is also influenced by the future role of the affiliate.
“For instance, if a British company supplies the whole EU market from a Hungarian station, there is no point in moving its distribution centre or the production to another member country,” Péter Goreczky told Index
To illustrate the example, he mentioned that the British pharmaceutical giant, GlaxoSmithKline (GSK), announced back in 2017 the extension of its factory in Gödöllő producing vaccine ingredients. This shows that when such a huge investment is carried out, there are years of preparational work and technological and business developments behind it, which make it complicated to move these projects to other countries.

Zoltán Gálik, adjunct professor of the Corvinus University of Budapest, said that despite the almost 4-year-long Brexit-saga, these companies had probably taken the necessary steps and created their affiliates or partner companies registered in the European Union.

What about an example closer to everyday citizens, products we order from the UK? For now, when we order something from a British webshop, and the price is over 22 euros, we pay 20% of VAT. With Brexit entering into effect starting from next year, we will need to pay the Hungarian VAT of 27% on these products. Or we thought so.

On Friday evening, the British government issued details on the agreement that contain the decision on preserving the country’s zero-tariff and zero-quota access to the bloc’s single market of hundreds of millions of consumers.

However, a product would attract tariffs under the agreement if more then 40% of its pre-finalised value was either not of British origin or from a non-EU country. 
Moreover, “if we order something through Amazon, for instance, and the product is produced in a partner country part of the free trade agreement with the EU, there will be no tariff imposed on this product, contrary to a product that would arrive from the UK,” Zoltán Gálik gave the example. On the other hand, he goes on to add that phone calls to the UK can become more expensive as it will not be part of the free roaming area of the EU anymore.

JOHNSON, Boris
London, UK. Photo: MTI/AP/Paul Grover

It seems like the two parties have managed to reach an agreement on all points of discussion, and the only thing left is to ratify it, which does require some time as the more-than-1,200-page-long document first needs to be translated to all the official languages of the EU before passing it to the European Council as the first step to accepting it unanimously. 

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Read alsoIs Brexit going to kill Hungarian second-hand shops?

Rules on entry of UK citizens into Hungary to change from Jan 1

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Hungary’s National Police Headquarters (ORFK) has released a guide on the post-Brexit rules on the entry of UK citizens into Hungary that will enter into force on Jan. 1.

Based on a 2020 law governing the residency rights of UK citizens and their family members, those who have already been living in Hungary for an extended period of time prior to Dec. 31, 2020 will retain the rights they were entitled to as European Union citizens after Jan. 1, 2021, according to the guide posted on the ORFK’s website. They may also apply for preferential status from national immigration authority OIF.

UK citizens whose family members are not entitled to the right to the freedom of movement will be subject to the general rules applicable to third-country nationals.

The ORFK noted that

UK citizens are exempted from a visa requirement when travelling to Hungary.

The UK voted to leave the EU in 2016. It officially left the bloc in January 2020, entering into a post-Brexit transition period which expires on Dec. 31.

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Read also“The situation is chaotic!” – Hungarians living in the UK are upset about the latest British restrictions

PM Viktor Orbán to veto the Brexit deal?

James Franey, a journalist of the Daily Mail, wrote on Twitter that PM Viktor Orbán might veto the Brexit deal if it is not suitable for the United Kingdom. The Brussels correspondent of the British daily highlighted that he managed to speak with the Hungarian PM – scroll down to read what Mr Orbán answered.

According to Index, there is a real chance that the European Union and the United Kingdom will not be able to sign an agreement regulating the trade ties between them. The European Union says that if they accepted the proposal of the British government, they would create their next-door trade competitor. Meanwhile, London states that they would only like to regain crucial parts of their sovereignty in, for example, fishing or in settling disputes.

That is why PM Viktor Orbán said to Mr Franey that

he would veto any agreement aiming to punish Britain for their decision to leave the European Union. 

“The eurocrats should only do a fair agreement with the British,” he added. 

444 also believes that there will be no agreement between the EU and the United Kingdom concerning the trade ties between them. Ursula von der Leyen, the chairwoman of the European Council, said that the situation is distressing, and

they could not agree in any of the main issues.

However, they will continue talks until Sunday.

British PM Boris Johnson said the same, highlighting that he is ready to continue the negotiations, and he would even visit the capitals of the leading member states to reach an agreement. The British government would reintroduce customs, 444 said.

We reported before that Timothy Garton Ash, a historian, political writer, and columnist of The Guardian, wrote in the daily that Hungary and Poland were blackmailing the EU over the rule of law, and them staying in the EU could be worse than Britain leaving. According to The Guardian’s columnist, the new relationship between the EU and Britain, as well as Brexit’s influence, will only be seen clearly after at least 5 or 10 years. Regarding the EU’s future, another question is whether the Scots will want to break up with England and rejoin the European Union.

However, Ash claims that the EU does not talk that much about the topic of Brexit anymore as the attention shifted towards “other enormous crises”. It has to put through the new budget and recovery fund that Hungary and Poland threatened by veto, holding the rest of the EU to ransom “to further weaken the proposed rule of law conditionality on those funds.” The Guardian columnist poses the question of

whether democratic Britain leaving or undemocratic Hungary staying is more dangerous for the future of the EU.

The Guardian: Hungary is worse for the EU than Brexit

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Timothy Garton Ash, a historian, political writer, and columnist of The Guardian, says Hungary and Poland are blackmailing the EU over the rule of law, and their staying in the EU could be worse than Britain leaving.

According to The Guardian’s columnist, the new relationship between the EU and Britain, as well as Brexit’s influence will only be seen clearly after at least 5 or 10 years. Regarding the EU’s future, another question is whether the Scots will want to break up with England and rejoin the European Union. However, Ash claims that the EU does not talk that much about the topic of Brexit anymore as the attention shifted towards “other enormous crises”. It has to put through the new budget and recovery fund that Hungary and Poland threatened by veto, holding the rest of the EU to ransom “to further weaken the proposed rule of law conditionality on those funds.”

The Guardian columnist poses the question of whether democratic Britain leaving or undemocratic Hungary staying is more dangerous for the future of the EU.

He says that, compared to what Viktor Orbán and Mateusz Morawiecki, the prime ministers of Hungary and Poland, are doing to their partners in the EU, former British prime minister Margaret Thatcher looks like “a gentle Europhile.” In comparison to Britain that was a major net contributor to the EU budget, Hungary and Poland are major net beneficiaries of it. The budget and the recovery fund together could contribute more than 6% of Hungary’s GDP – and still, the two countries, in his opinion, refuse to accept some minimal rule of law conditions that are essential to maintaining the democracy and shared legal order of the EU.

Ash says that with the veto, Hungary and Poland are basically refusing to let Germany and the Netherlands make transfers to southern Eurozone countries that were hit hard by the coronavirus pandemic, such as Italy and Spain, unless the EU keeps letting them use great amounts of money, without constraints – supporting, for example, Orbán’s “increasingly undemocratic regime”, as well as his family and friends.

The Guardian columnist calls the ruling parties of the two countries populist, xenophobic, and nationalist, who will continue to do however they please, supported by EU money, if the “blackmailing” over the rule of law succeeds.

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Read alsoForeign minister: Hungary ‘won’ in EU budget debate

Brexit won’t have big impact on Hungary

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If Brexit goes ahead without a trade agreement, the economic impact on Hungary will be negligible, business daily Világgazdaság said on Tuesday.

Hungary-UK cooperation is expected to be extensive in the future, especially in the areas of energy, car making, decarbonisation, AI and green mobility, the UK ambassador to Budapest, Paul Fox, told the paper.

Raiffeisen Bank analyst Zoltán Török said research from 2016 indicates that Hungary’s economic growth may shrink by 0.2-0.3 percentage points in the year after Brexit if there is an agreement.

Hungary’s ties with the UK are closer than those of other countries in the region, with a correspondingly greater impact, though in light of the effects of the coronavirus crisis, the effect could be barely noticeable, he added.

Whereas on the macroeconomic scale Brexit’s impact may be negligible, companies directly affected by Brexit may feel its impact more keenly, he said.

Hungary is the UK’s third largest export partner in the region, with trade in goods and services worth 5.7 billion pounds sterling over the past four quarters,

the ambassador noted. Businesses range from telecommunications equipment, electrical machinery, pharmaceuticals to manufacturing products. The UK is the sixth largest investor in Hungary.

Tourism is also a large component:

417,000 Britons visited Hungary last year.

The surplus of service exports will take a big hit this year, with the corona crisis mainly affecting Budapest, the primary destination for British tourists.

But as the epidemic wanes, Budapest could once again be a popular destination, Duncan Roberts, commercial director of the British Airways, said.

Next year British tourist guest nights in Budapest could reach 60-70 percent of the 2019 level if the borders are open and the virus subsides.

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Read alsoHungarians everywhere – Prince Charles talked proudly about his Hungarian ancestors – VIDEO

EU, UK entering “last week or so” of substantive Brexit negotiations

British Foreign Secretary Dominic Raab said Sunday that talks with the European Union (EU) on post-Brexit trade are entering “the last week or so” of “substantive” post-Brexit trade negotiations.

Calling on the EU to accept a “point of principle” on fisheries, one of the sticking points in the talks, he seemed to reject what is reported to be the EU’s current offer on fishing — to return between 15 to 18 percent of fish stocks currently caught by EU fleets in British water, Sky News reported.

On other outstanding issues, Raab told Sky News that it “feels like there’s progress towards greater respect” for Britain’s position on so-called “level playing field” commitments — a set of post-Brexit common rules and standards.

Britain and the EU resumed face-to-face post-Brexit talks in London on Saturday after a EU negotiator tested positive for coronavirus earlier this month.

The negotiations are in a crucial stage as time is running out for both sides to secure a deal before Brexit transition period expires at the end of the year.

Britain and the EU started their lengthy and bumpy post-Brexit talks in March after Britain ended its EU membership on Jan. 31, trying to secure a future trade deal before the Brexit transition period expires.

Commenting on the coronavirus pandemic and its accompanying economic crisis, Raab said “ought to focus all of our minds on doing everything we can to give the economy a bit of a boost — both on the UK side but also on the continental European side”.

His remarks came as another 15,871 people in Britain have tested positive for COVID-19, bringing the total number of coronavirus cases in the country to 1,605,172, according to official figures released on Saturday.

The coronavirus-related deaths in Britain rose by 479 to 58,030, the data showed.
To bring life back to normal, countries such as Britain, China, Germany, Russia and the United States are racing against time to develop coronavirus vaccines.

Paul Fox, the UK's new Ambassador to Hungary
Read alsoBritish Ambassador to Hungary: UK aims to strengthen ties with Hungary after Brexit

British Ambassador to Hungary: UK aims to strengthen ties with Hungary after Brexit

Paul Fox, the UK's new Ambassador to Hungary

The United Kingdom aims to strengthen its ties with Hungary as it leaves the European Union, especially in the security and economic sectors and through interpersonal ties, Paul Fox, the UK’s new Ambassador to Hungary, told public broadcaster Kossuth Radio on Monday morning.

Rather than letting bilateral ties wither, both countries have a vested interest in strengthening them by increasing the number of major British investors in Hungary, the ambassador said. There is a lot the two countries can do together to fight climate change, Fox said.

Developing ties in education is also an important objective, he said.

Hungary and the UK are working to ensure that after the transitional period following Brexit, conditions of travel, study and work do not change for Hungarian citizens in the UK and vice versa, he said. Such an arrangement is conditional on a comprehensive agreement with the EU, he added.

The United Kingdom has already registered over 100,000 Hungarians working there, the ambassador said, and added that Britons working in Hungary would soon receive information on new regulations affecting them.

Fox was appointed Ambassador to Hungary in September 2020.

UK, EU to resume trade talks in London Monday as “significant differences” remain

Negotiators from British and the European Union (EU) will resume talks on a post-Brexit trade deal in London on Monday as “significant differences” remain between the two sides, a Downing Street statement said Saturday.

The statement came after a call between British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen on Saturday “for a stock take on the progress in the negotiations”.

London
Read alsoThousands of Hungarians keep registering to stay in the UK

Is Brexit going to kill Hungarian second-hand shops?

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The remaining EU states’ relationship will drastically change from 2021, as the UK leaves the Union, although not all the details about Brexit have been agreed upon yet. Experts have now revealed how the transitional period’s end will affect second-hand stores in terms of legal changes.

After the transitional period, the harmonised trademark rules of the EU will no longer apply to the United Kingdom, which will have a huge impact on retailers who import goods from the UK with the purpose of reselling them domestically, Taylor Wessing Budapest Law Firm explained, according to Napi.

A trademark grants an exclusive right to its proprietor, meaning one can only use the protected mark with the proprietor’s consent, which applies to the sale of goods as well, meaning that the proprietor of a brand can determine where and how someone can market their goods as they have control over the trade.

Within the European Economic Area (EEA), their control is limited as, if a trademark-protected product is marketed in any of the EU countries with the proprietor’s permission, the trademark will be considered “exhausted” and no longer applies to further resale of the goods. Therefore, the proprietor cannot oversee the trade and resale of the trademarked goods between EEA countries.

This is how a Hungarian retailer can stock up on branded products in another EU state where prices are lower and then resell those products at a lower price than other Hungarian retailers without having to ask the owner of the trademark for permission. This is called “parallel trade.”

This does not apply to products which were initially placed on the market outside of the EEA, meaning that as the transitional period comes to an end, the parallel trade of goods which were first placed on the market in the UK will no longer be possible. The permission of the trademark owner will be required for the reselling of those goods within the EEA.

Trademark rights and their exhaustion are the same for both new and second-hand products, and seeing as Hungary imports large amounts of second-hand clothes from the UK, they will be impacted by the change as well. They will only be able to sell second-hand clothing without the trademark proprietor’s consent if the product had previously been marketed in the EEA with the permission of the trademark owner.

The reselling of clothes in the EU, including Hungary, will require the explicit permission of the trademark proprietors after the transitional period comes to an end.

Although it may not be likely or realistic that major fashion brands will file infringement lawsuits against all the “English Used Clothes” second-hand stores in Hungary reselling their branded products without authorisation, Taylor Wessing Budapest experts point out that more prestigious brands may take action against secondary sales to protect their brand’s marketing position.

Read alsoShopping in Budapest 101

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Read alsoCan a Brexit rabbit be pulled out of the hat as deadline looms?

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Read alsoBritish Ambassador about Brexit: “No one supported us as much as Hungary did”

Can a Brexit rabbit be pulled out of the hat as deadline looms?

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With week-long Brexit negotiations between Britain and the European Union (EU) ending Friday without a significant breakthrough, the big question was what happens next.

The focus will switch to a planned video conference call Saturday between British Prime Minister Boris Johnson and the President of the European Commission Ursula von der Leyen.

It has left Brexit watchers and political commentators in London wondering Friday night whether the two political heavyweights can find a way through a deadlock.

Johnson said in a media interview Friday it was now up to the EU to avoid a no-deal scenario over post-Brexit trade.

Noting that a deal with Brussels was “all there”, Johnson said Brussels had to be commonsensical to get an agreement across the line, with both sides setting an October deadline to settle their differences.

On the BBC, Johnson said: “I hope that we get a deal, it’s up to our friends (in Brussels).”
He added that the EU had done a deal with Canada of a kind that Britain wanted, adding: “why shouldn’t they do it with us? We’re so near, we’ve been members for 45 years. It’s all there, it’s just up to them.”

This week’s ninth-round of negotiations was billed as the final shot at resolving differences ahead of a critical meeting mid-October of leaders of the 27 EU member states.

The Daily Telegraph in London posed the question Friday “what will come from Johnson and von der Leyen’s powwow?”

The commentary said the president of the commission had made clear that the game was not up yet, as the final scheduled round of UK-EU trade negotiations closed in Brussels.

“Is the Prime Minister limbering up to make some concessions?” asked the Telegraph, citing the fact that Johnson had previously done an about-turn on his insistence there would be no different post-Brexit customs rules between Northern Ireland and the rest of Britain.

The future of fishing in the waters around Britain as well as Brussels’ demand for a level playing field on state support by the British government for its industries remain high on the “to-do” list.

The Telegraph asked if Britain agreeing to stay roughly within the EU limits for state subsidies could be a deal-breaker.

Britain’s chief Brexit negotiator David Frost said familiar differences remained, adding that on fisheries the gap between the two sides was unfortunately very large.

Frost warned that without further realism and flexibility from the EU, there’s a risk of difference being impossible to bridge.

Downing Street confirmed Johnson would speak to the commission president on Saturday afternoon to take stock of negotiations and discuss next steps.

London and Brussels have agreed to continue in talks over the next two weeks ahead of the critical EU summit on Oct. 15.

The Guardian revealed earlier this week that Britain had offered a three-year transition period for European fishing fleets to allow them to prepare for the post-Brexit changes as part of an 11th-hour deal sweetener.

Britain ended its membership of the EU on Jan. 31 but is sticking to the bloc’s trade rules during a transition period which ends on Dec. 31.

With Britain insisting there will be no extension, it could mean trade between the UK and EU conducted under World Trade Organization (WTO) rules from Jan. 1 if no deal is struck by then.

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Read alsoEU, UK officials meet in emergency talks over controversial Brexit bill

PM Orbán told who would win the US elections and what he thought about Huxit

Prime Minister Viktor Orban told Reuters on Friday he was convinced that Donald Trump would win the US presidential election set for November 3.
 
“We have an exceptionally good relationship with Trump,” Orban said in his interview. Answering a question, he added that “probably the level of openness and kindness and helping each other will be lower should Joe Biden win”.

“He (Trump) will win,” Orban said. Once that happens, the European Union “will need to normalise its trade relationship with the United States and also establish clarity about the long-term presence of US troops on European soil”, he said.
 
Britain’s decision to exit the European Union was a brave one
 
but Hungary will not follow that path, Prime Minister Viktor Orban said in an interview with Reuters on Friday.

Orban said the EU only had itself to blame for the British referendum vote to leave the bloc because of the way it had treated the country. “Brexit is a brave decision of the British people about their own lives…we consider it as evidence of the greatness of the British,” he said.

“We can’t afford to follow that track,”

the prime minister added.

He said that the Hungarian economy has been too closely integrated into the EU to follow Britain out. Orban said that there was a high level of support for the EU in Hungary despite the country’s many disputes with other member states over issues such as migration and the rule of law.

Hungary does not support the new migration and refugee package presented by the European Commission on Wednesday, Prime Minister Viktor Orban told Reuters newswire on Friday. Under the package, Hungary’s commitment to send people back from the southern EU states like Italy or Greece, where they first arrived, could turn into an obligation to accommodate them in Hungary, he said.

Budapest will not agree to anything
 
that could lead to Hungary being under obligation to take in people coming from the Middle East or Africa, Orban said. “That is a very problematic point… It’s nothing else but just renamed relocation. And we always reject relocation. This point is not acceptable for the Hungarian people,” he said.

EU, UK officials meet in emergency talks over controversial Brexit bill

brexit negotiation

Senior officials from the European Union (EU) and Britain met in London on Thursday for hastily arranged talks over a controversial Brexit bill as British Prime Minister Boris Johnson intended to override key parts of the Withdrawal Agreement previously agreed with Brussels.

British Cabinet Office Minister Michael Gove talked with European Commission Vice President Maros Sefcovic in an “extraordinary meeting.”

Sefcovic told Gove that violating the Withdrawal Agreement would break international law and jeopardize trade talks, according to an EU statement.

“In no uncertain terms” that the “timely and full implementation” of the divorce deal is “a legal obligation,” said the statement.

Sefcovic urged the British government to withdraw these measures that break international law from the bill “by the end of the month,” adding that the Withdrawal Agreement “contains a number of mechanisms and legal remedies to address violations of the legal obligations contained in the text, which the EU will not be shy in using.”

Issuing its own robust response, the British government said it would “discharge its treaty obligations in good faith,” but added that “in the difficult and highly exceptional circumstances in which we find ourselves, it is important to remember the fundamental principle of parliamentary sovereignty.”

Rejecting Britain’s arguments that the bill is designed to protect peace in Northern Ireland, the EU argued that “it does the opposite.”

Sefcovic said that by presenting the draft United Kingdom Internal Market Bill, the British government has damaged the EU’s trust which the UK now has to re-establish.

Britain on Wednesday published the controversial bill, which overrides elements of Johnson’s Brexit deal with Brussels, despite a senior minister explicitly acknowledging that the plan would breach international law.

The new bill will be formally debated by MPs in the British parliament for the first time on Sept. 14. It is intended to ensure Northern Ireland can continue to enjoy unfettered access to markets in the rest of Britain.

The bill was published amid the EU’s growing anger after Britain brushed aside warnings from the regional bloc that breaching the treaty would prevent any trade deal being struck. The British government has said it is prepared to walk away with no deal if progress is not made soon.

Professor Mark Elliott, public law expert at Cambridge University, described the British government’s response as “utterly risible,” and that Britain, like every other state, is required in international law to abide by its treaty obligations.

“The UK may have left the EU, but it has not left the community of nations or the rules-based international order,” said Elliott.

Britain’s membership of the EU ended Jan. 31, but as part of a transition period it is sticking with the bloc’s rules until Dec. 31.

Both sides have said a future trade deal needs to be agreed by mid-October to enable it to be approved ahead of Jan. 1, 2021. If there is no deal in place by then, Britain will trade with the EU on WTO terms.

Read alsoEU chiefs concerned about UK’s intention to breach Brexit agreement

EU chiefs concerned about UK’s intention to breach Brexit agreement

European Commission President Ursula von der Leyen said on Wednesday she is “very concerned” about the United Kingdom’s intention to breach the Brexit agreement.

“Very concerned about announcements from the British government on its intentions to breach the Withdrawal Agreement. This would break international law and undermines trust. Pacta sunt servanda (Latin words, meaning “Agreements are to be kept”) = the foundation of prosperous future relations,” she tweeted.

European Council President Charles Michel echoed:

“The Withdrawal agreement was concluded and ratified by both sides, it has to be applied in full.”

The two leaders of the European Union (EU) made the remarks after the British government announced earlier Wednesday to bring to the UK parliament a new bill that could partially breach the Brexit deal reached with Brussels.

The Internal Market Bill is supposed to protect jobs and trade across the whole of Britain after the Transition Period ends, according to the UK government. But a BBC report said it could override parts of the Withdrawal Agreement that secured the UK’s exit from the EU, in breach of international law.

The Withdrawal Agreement was signed between the EU and the UK on Jan. 24 of 2020, setting the terms of the withdrawal of the UK from the EU.

Britain ended its EU membership on Jan. 31 and at that moment the Withdrawal Agreement entered into force.

But the UK is still following EU rules during the transition period until Dec. 31 of 2020 to allow both sides to bridge differences on the post-Brexit relationship, and forge a permanent future trade deal.

british_embassy_budapest
Read alsoBritish Ambassador about Brexit: “No one supported us as much as Hungary did”

British Ambassador about Brexit: “No one supported us as much as Hungary did”

british_embassy_budapest

From the reinforcement of British-Hungarian ties to the best Hungarian poets and wine regions, Iain Lindsay’s years as an ambassador in Hungary were a journey full of political challenges and exciting cultural experiences.

In an interview made with Magyar Nemzet, resigning British Ambassador to Hungary Iain Lindsay talks about Brexit, his work at the Embassy, his favourite things about Hungarian culture, and how his Scottish roots influenced the way he sees Hungary.

Brexit as seen from Budapest

When Lindsay applied to be Her Majesty’s Ambassador to Hungary in 2014, there was no way of telling that his work would be so strongly determined by Brexit. He says that apart from the withdrawal negotiations, his most important job in recent years was to re-establish bilateral ties between the UK and Hungary. With Hungary’s accession to the EU in 2004, certain elements of this relationship had vanished, but the fact that these will no longer be handled by Brussels gives both countries a chance to reinforce these ties.

Iain Lindsay Brexit Hungary ambassador
Iain Lindsay
Source: facebook.com/ukinhungary

With regards to Brexit, he personally thinks that what is happening in Westminster is a “perfect example of a well-functioning democracy”, even though the delay in decision-making might reduce the time to conclude a free trade agreement with the EU. He adds that while the British decision to leave the EU received vast criticism from many different sources,

“there is no country in the European Union that was as supportive and respectful with us as Hungary.”

In the last decade, nearly 140,000 Hungarians arrived in the UK, as opposed to 20,000 in 1956 – seeing the number of Hungarians living in the UK today, it cannot be ignored that Brexit was a painful blow to Hungary, but “the UK will guarantee the rights of Hungarians living there”, he says reassuringly.

Active role in Hungarian public life

Lindsay says that despite the many formalities, “the United Kingdom is a very practical country”. The Embassy in Hungary, for example, provided sponsorship in a large number of events, such as the Budapest Beer Festival; it was involved in charity runs, and raised funds, with the involvement of Scottish football fans, for the renovation of a kindergarten in Budapest’s Józsefváros.

As for his personal experiences, Lindsay was a leading participant of the March of the Living, which was also a tribute to Jane Haining, a Scottish hero who helped many Jews in Budapest during the Holocaust. He was the flag-bearer for the British team at the Maccabi Games organised in Budapest, and not long ago, he was even given a small role in the Puskás musical.

Hungary in the eyes of an ambassador

During his service of four years, he highly enjoyed working and living in Hungary. He learned to speak Hungarian, and he shows great enthusiasm about Hungarian culture in general. Some Hungarians whose life he is most intrigued by are Tibor Scitovszky (a politician who ordered the construction of the building housing the British Embassy today), and poets Miklós Radnóti and Gyula Juhász. He thinks that “Sándor Petőfi is to Hungary what Robert Burns is to Scotland”.

For the links between Hungary and his home country, Scotland (and the UK), he tells the story of Saint Margaret of Scotland and speaks about Budapest’s Chain Bridge (Lánchíd), which is actually a replica of the English Marlow Bridge and was designed by William Clark.

“Scottish people resemble Hungarians in that both nations are proud of their national identity, and none of them likes to depend on others.”

Iain Lindsay’s favourite Hungarian places are Szeged and the Balaton Uplands. In Budapest, he loves the night view over the city from Gellért Hill and enjoys taking tram 2 along the Danube promenade. His favourite Hungarian foods include goulash and the Esterházy cake, and he loves the wines from the Szekszárd region. “I think that wine is Hungary’s best-kept secret”, he concludes the interview.

british_embassy_budapest
Read alsoBritish Ambassador about Brexit: “No one supported us as much as Hungary did”

Brexit: Britain sets deadline on October 15 for EU to compromise

brexit

Britain has set a deadline on Oct. 15 for the European Union (EU) to agree on a trade deal, otherwise the island country would go ahead with the Brexit without a deal, several major media reported on late Sunday.

Britain ended its EU membership on Jan. 31 this year but is still following EU rules during the transition period until Dec. 31 to enable a permanent future trade deal to be reached.

However, British Prime Minister Boris Johnson, according to local media reports, talked tough on the deal negotiations with the EU. He will announce a deadline on Oct. 15 for the deal to be reached, his office was quoted as saying on Sunday.

“If we can’t agree by then, then I do not see that there will be a free trade agreement between us, and we should both accept that and move on,” he said.

The British government’s chief Brexit negotiator David Frost said Sunday that his government is unafraid to walk away from the post-Brexit trade talks with the EU if the regional bloc does not compromise on major issues, including fisheries and state aid rules.

“We are not going to compromise on the fundamentals of having control over our own laws. We are not going to accept level playing field provisions that lock us in to the way the EU do things,” he said.

Trade talks are to resume on Tuesday in London between the two sides, which will be the eighth round of Brexit talks and is expected to mark the final phase of the negotiations.

The EU’s chief negotiator Michel Barnier said Wednesday in Dublin that he was “worried and disappointed” after Frost made no concessions to end the impasse during their informal talks in London a day earlier.

Brexit, passport, borders
Read alsoEU freedom of movement ends under UK’s new immigration rules