my obvious question is: what any of that means in practice? Does it for example mean that the child has to pay taxes or not? Is the child eligable for social services or not? And if that makes a child basically of the same status as an illegal migrant
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I don't think so, no.
I believe it removes the assumption that the state has powers over your role as a parent.
Yes it means that the child is an illegal migrant for all countries. Also means that the child has no residence since they are in said country illegally.
But the bonus is that they don’t have to pay taxes. The downside is that they won’t be making that much money anyway