A directive adopted by the European Parliament and the Council on 29 April 2004 on the right of citizens of the European Union and their family members to move and reside freely within the territory of the EU brings together the complex body of legislation that existed in this area. It eliminates the need for EU citizens to obtain a residence card, introduces a permanent right of residence, defines more clearly the situation of family members and restricts the scope for the authorities to refuse or terminate residence of EU citizens who come from another member state. The member states have two years, until 30 April 2006, to transpose this directive.

Free movement of people has existed since the foundation of the European Community in 1957. It was introduced from an economic point of view, since the right was linked to a person's status as a salaried worker. The right was then extended to self-employed persons and service providers. Family members were entitled to the same rights. In effect, free movement of people was part of the broader project of realising a common market with free movement of capital, goods and services.

If at the start of the European Community, freedom of movement for people was only envisaged for economic reasons, this right has been extended during the years to encompass all categories of citizens. In 1990, three directives were adopted, which guarantee the rights of residence to categories of persons other than workers: retired persons, students, and inactive people.

Free movement as a fundamental right

In 1992, the Maastricht Treaty introduced the concept of citizenship of the European Union which confers on every Union citizen a fundamental and personal right to move and reside freely without reference to an economic activity. The Amsterdam Treaty, which came into force in 1999, further strengthened the rights linked to European Union citizenship.

The new legal and political environment entailed by EU citizenship has allowed for a fresh look to be taken at arrangements for EU citizens to exercise their rights and for the creation of a single set of rules governing freedom of movement.

Union citizens should, mutatis mutandis, be able to move between Member States on similar terms as nationals of a Member State moving around or changing their place of residence inside their own country.

What are the current rights?

EU citizens have the right to enter, reside and remain in the territory of any other Member State for a period of up to three months simply by presenting a valid passport or national identity card: no other formality is required. If they intend to remain for a period exceeding three months, a residence permit must be obtained. The conditions for granting a residence permit depend on the status of the citizen (employed or self-employed person, student, retired or inactive person).

Any EU citizen can take up an economic activity in another Member State either as an employed or self-employed person. In this case, he/she will be issued a residence permit by simply presenting an identity document (passport or ID) and proof of employment or self-employment.

If a citizen wants to reside in another Member State without exercising any activity or to study, he/she can do so provided he/she can prove (and in the case of students, declare) that he/she has sufficient financial resources not to become a burden for the host Member State's social assistance system and that he/she is covered by a sickness insurance policy. He/she must also prove that he/she has sufficient financial resources and sickness insurance for each member of his/her family who is entitled to reside with him/her.

Family members, irrespective of their nationality, have the right to accompany and establish themselves with a EU citizen who is residing in the territory of another Member State. Family members who can enjoy rights under Community law include the spouse, minor (under 21) or dependent children, and dependent ascendants, though in the case of students only the spouse and dependent children enjoy this right. If the family members are not EU citizens, they may be required to hold an entry visa by the Member State where they intend accompany the EU citizen. They shall be granted this visa free of charge and with all facilities by that Member State.

Over the years, the Commission has initiated a wide range of measures designed to make the right to free movement a practical reality. For example, laws relating to the recognition of academic and professional qualifications across the EU are now in place. The employment web site, EURES, offers job-seekers and employers EU-wide an information and advisory service in order to facilitate labour mobility. Country guides for people wishing to enter and/or live in another Member State are also available.

Challenges on the road ahead

Despite impressive advances, EU citizens may still face problems when they move to another Member State. Common difficulties concern notably the lack of information about the extent of their rights, lengthy administrative procedures in obtaining residence documents and the precise definition of the rights of family members.

In order to overcome these difficulties, the European Commission presented proposal for a directive on the right of the EU citizens and their family members to move and reside freely within the territory of the Member States in the new legal and political environment entailed by citizenship of the Union. The proposal was adopted by the Parliament and Council on 29 April 2004.

Its main objectives are:
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To simplify the conditions and administrative formalities associated with the exercise of the right of free movement and residence in the Member States. For residence of less than three months, the only requirement is the possession of a valid identity document. For residence of more than three months, the need to hold a residence card for citizens of the Union is abolished and replaced by registration in the population register of the place of residence, validated by a certificate issued immediately on presentation of proof that the conditions attached to the right of residence are complied with. EU citizens must be either workers or self-employed persons or else dispose of sufficient resources not to become a burden on the social assistance system of the host Member State and a comprehensive sickness insurance. Members of the family must provide proof of identity and of the family link to an EU citizen.
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To introduce the right of permanent residence for EU citizens after five years of continuous residence. They will no longer be subject to any conditions on the exercise of their right of residence, with virtually complete equality of treatment with nationals.
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To facilitate the movement of family members irrespective of whether they are EU nationals or not. The definition of 'family members' covers for the first time registered partners under the legislation of a Member State, if the legislation of the host Member State treats registered partners as equivalent to marriage. Other partners of EU citizens will not have an automatic right to entry and residence in the host member state. However, the host member state will have to "facilitate" the entry and residence of the partners with whom the EU citizen has a "durable relationship duly attested", taking into consideration their relationship with the EU citizen. Family members who are nationals of third countries also enjoy greater legal protection, for example in the event of death of the EU citizen on whom they depend, or the dissolution of the marriage under certain circumstances.
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To clarify the limitations to the right of residence on grounds of public policy, public security and public health. The proposal ensures that citizens of the Union enjoy better administrative and legal protection in the context of measures restricting their right of residence, and guarantees strong protection against expulsion for minors and persons who have resided in the host Member State for a long period of time.

[source: europa.eu.int]