We know that following the decision on Brexit, many of our British colleagues are considering or have already applied for the nationality of their country of residence. But beware! This could have repercussions on your expatriation allowance! The current interpretation of the PMO is that if you had never lived and worked in Luxembourg prior to your recruitment, you keep the 16% even if you become a Luxembourgish national. However, we have information that the Commission may reconsider this, and staff regulations are not very clear.
It could happen that the Commission (with its penny-pinching mentality and to avoid any potential conflict with the Council) would opt to cut this allowance and then wait to see if an official brought a Court case. They would then have to follow the decision of the Court whichever way that went.
So, if you are thinking of getting Luxembourg nationality, think twice, and put in the balance the possibility of losing the 16% allowance. If you already have Luxembourgish nationality and have retained the 16%, keep preciously any communication from the PMO about it for a possible future court case. This of course applies to colleagues of all nationalities and not just Brits.
We would be pleased to hear from you on this or any other concerns related to Brexit. We must remain very alert as the Commission is in unchartered waters and won't hesitate to profit from this situation to the detriment of staff in order to please Member States. Perhaps that is the only certainty in an uncertain future.
The Team of Solidarité Européenne