COMMISSION STAFF WORKING DOCUMENT EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT [ ] Accompanying the document Proposal for a Directive of the European Parliament and of the Council concerning the status of third-country nationals who are long-term residents (recast)
Date: 2022-04-27
Institutions: Directorate-General for Migration and Home Affairs, European Commission
Subjects: EU migration policy, admission of aliens, foreign national, free movement of persons, integration of migrants, legal status, residence permit, third country

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   EUROPEAN COMMISSION  Brussels, 27.4.2022  SWD(2022) 650 final  COMMISSION STAFF WORKING DOCUMENT  EXECUTIVE SUMMARY OF THE IMPACT ASSESSMENT REPORT  […] Accompanying the document Proposal for a Directive of the European Parliament and of the Council concerning the status of third-country nationals who are long-term residents (recast) {COM(2022) 650 final} - {SEC(2022) 200 final} - {SWD(2022) 651 final}  
 
 
Legislative initiative on revising the Long-term residents Directive (2021 Commission work programme) 

Executive Summary Sheet 

Why? What is the problem being addressed? 

A. Need for action 

The main objective of the Long-term residents Directive is integrating third-country nationals who are settled on 
a  long-term  basis  in  Member  States.  This  is  a  key  element  in  promoting  economic  and  social  cohesion,  a 
fundamental  objective  of  the  EU.  For  this  purpose,  the  Directive  sets  out  the  conditions  under  which  third-
country  nationals  who  have  legally  and  continuously  resided  in  a  Member  State  can  acquire  ‘EU  long-term 
resident  status’.  However,  as  highlighted  already  in  the  2019  Fitness  Check  on  legal  migration  and 
implementation  report,  some  unresolved  problems  continue  to  undermine  fully  achieving  the  Directive’s 
objectives. In particular: 
1)  there are a number of barriers to acquire EU long-term resident status for many third-country nationals, 

who therefore cannot benefit from this status that enables integration in the host society; 

2)  there are barriers to the integration of long-term residents due to a lack of clarity and consistency in the 

rights granted by the EU status;  

3)  third-country  nationals  with  EU  long-term  residence permits  face a  number  of  barriers in  exercising  the 

right to move and reside in other Member States. 

What is this initiative expected to achieve?  
The general policy objectives of the initiative are to: 
1)  ensure migration flows in the EU are managed efficiently through the approximation and harmonisation of 

Member States’ national legislation; 

2)  ensure the fair treatment of third-country nationals legally residing in the EU; 
3)  strengthen the EU’s competitiveness and economic growth. 

The specific policy objectives correspond to the main problems above and aim to: 
1)  create a more coherent, efficient and fair system to acquire EU long-term resident status; 
2)  facilitate long-term residents’ right to move and reside in other Member States (intra-EU mobility); 
3)  improve the rights of long term-residents and their families. 

What is the added value of action at EU level?  

The objective to improve the use and effectiveness of the EU long-term resident status cannot be achieved by 
Member States alone. Further improving these common procedures requires EU action. The problems identified 
above  are  unlikely  to  disappear  soon,  and  they  are  directly  related  to  the  current  legal  rules.  In  particular, 
effective rules on intra-EU mobility can only be defined at EU level. 

B. Solutions 

What legislative  and  non-legislative  policy  options  have  been  considered?  Is  there  a  preferred choice 
or not? Why?  
The impact assessment evaluates four options with different levels of EU intervention. 
  Option 1 involves non-legislative action aiming to improve how the Directive is implemented and promote 

EU long-term resident status. 

  Option  2  envisages  a  targeted  revision  of  the  Directive  aiming  to  ensure  a  level-playing  field  with  the 

national statuses and improve long-term residents’ rights, including intra-EU mobility. 

  Option  3  envisages  a  wider  revision  of  the  Directive  that  includes  the  measures  in  option  2  and  also 

facilitates the conditions to acquire EU long-term resident status. 

  Option 4 envisages a major legislative revision of the Directive creating a single EU permanent residence 
status, abolishing national schemes, and grants the right to move freely within the EU to long-term residents. 
The  preferred  option  is  option  3.  It  would  contribute  to  addressing  all  identified  problems  and  improve  the 
Directive’s  overall  implementation.  It  has  the  best  social  and  economic  impact  and  is  the  most  politically 
feasible option. 

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Who supports which option?  

The European Parliament favours a legislative revision of the Directive that addresses all identified problem 
areas. Some Member States have expressed their concerns about a legislative revision of the Directive, while 
others  are  open  to  the  changes  in  options  2  and  3.  All  Member  States  opposed  a  major  revision.  Most 
stakeholders consulted (civil society, economic and social partners, and legal migration experts) are in favour of 
the measures in options 2 and 3. 

C. Impacts of the preferred option 

What are the main benefits of the preferred option?  
The  preferred  option  includes  many  measures  that  would  address  most  of  the  identified  shortcomings  in  the 
Directive  in  all  problem  areas.  The  preferred  option  is  expected  to  have  social  and  economic  benefits.  The 
economic benefits are based on the assumptions that more third-country nationals would have access to EU long-
term  residents  status  with  the  corresponding  rights,  and  an  increased  share  of  third-country  nationals  would 
move  to  another  Member  State.  This  would  lead  to  a  higher  tax  revenue  overall,  increased  productivity  and 
spending, and improved economic growth. The preferred policy option would bring more consistency with case 
law of the Court of Justice of the European Union. 
Lastly,  the  preferred  option  is  expected  to  be  the  best  one  to  address  the  occasionally  diverging  stakeholder 
views (see the section above) and so is the most politically feasible one. 

What are the main costs of the preferred options?  

recurrent compliance costs: EUR 900 000. 

recurring administrative costs: EUR 151 000; 

The estimated costs of the preferred option include the following costs for Member States: 
  one-off administrative costs: EUR 781 000; 
 
  one-off compliance costs: EUR 452 000; 
 
The following recurring cost savings are also estimated (on average every year):  
  Member States: EUR 24 500;  
  Third-country nationals: EUR 1 145 000;  
  EU businesses: EUR 112 700. 
How will businesses, small and medium-sized companies (SMEs) and microenterprises be affected?  

The  preferred  option  would  help  businesses,  in  particular  the  measures  to  facilitate  intra-EU  mobility. 
Employers,  and  in  particular  SMEs,  would  benefit  from  access  to  a  larger  pool  of  qualified  third-country 
nationals already legally residing in the EU. 
Will there be significant impacts on national budgets and administrations?  
The national authorities  in  charge will need to adapt existing procedures and ensure compliance with the new 
rules  because  of  the  level-playing  field  mechanism,  the  amended  conditions  to  acquire  the  status,  and  the 
measures for intra-EU mobility. However, the preferred option brings significant simplification, which to some 
extent counterbalances the administrative and compliance costs.  

Will there be other significant impacts?  
The preferred option will have a positive impact on third-country nationals who will benefit from the measures 
introducing a level-playing field. They will have a real choice between the EU long-term residence permit and 
national long-term residence permits, be able to fulfil the conditions to acquire the EU long-term residence status 
more  easily,  and  benefit  from  improved  rights  –  including  intra-EU  mobility  rights  –  and  circular  migration 
opportunities. 

D. Follow up 

When will the policy be reviewed?  
Article 24 of the Directive already provides for reporting obligations, i.e. for the Commission to regularly 
present a report on the application of the Directive in Member States and to propose amendments it deems 
necessary. This principle will also apply to the changes in the Directive’s revision. 

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