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British Prime Minister Theresa May's offer to grant EU migrants who have lived in the UK for five years at the Brexit cut-off date "UK settled status" is a "first step but not sufficient" European Commission President Jean Claude Juncker at the EU summit on Friday.
Those who qualify will be allowed to access health, education and other benefits.
The plan would affect 3.2 million EU citizens, including many Italians, now living in the UK.
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