Agreement reached on an EU fund to help regions and businesses adapt to Brexit – The European Sting – Critical News & Insights on European Politics, Economy, Foreign Affairs, Business & Technology
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EU lawmakers on Thursday reached political agreement on the € 5 billion Brexit Adjustment Reserve, paving the way for a first payment by December.
With a budget of 5 billion euros (at 2018 prices – 5.4 billion euros at current prices), the Brexit Adjustment Reserve (BAR) will focus on the countries and sectors most affected by the withdrawal from the Kingdom -United EU.
A first tranche of € 1.6 billion of pre-financing will be available by December 2021. Two other pre-financing tranches of € 1.6 billion will be paid in early 2022 and 2023. The remaining € 1 billion will be paid in 2025.
Method of attribution
According to the provisional agreement, three factors will be used to calculate how much money each EU country will receive from the RAB: the importance of trade with the UK, the importance of fishing in the exclusive economic zone of the UK United and the population living in the maritime regions. bordering the United Kingdom.
Ireland will be by far the largest recipient in absolute terms, followed by the Netherlands, France, Germany and Belgium.
Member States which are heavily dependent on fishing will have to devote a specific percentage of their national allocation to small-scale coastal fishing and to local and regional communities dependent on fishing activities.
Parliament agreed with Council on an extension of the eligibility period to cover expenditure incurred between January 1, 2020 and December 31, 2023 for measures specifically taken to mitigate the expected negative effects of Brexit. The Commission proposal has limited this period between July 1, 2020 and December 31, 2022.
The measures supported by the RAB must be specifically put in place in relation to the UK’s withdrawal from the EU. These may include:
– support for businesses (especially SMEs), the self-employed and local communities;
– investments in job creation and reintegration into the labor market, including short-term work programs, retraining and training courses;
– support to help citizens returning from the UK following Brexit to reintegrate;
– support for the functioning of border, customs, sanitary, phytosanitary and security controls, fisheries controls, certification and licensing systems.
“The European Parliament has kept its promise. We wanted a swift European response and swift help to regions and businesses suffering from the negative effects of Brexit. This is what we managed to do with today’s agreement. We have defined clear criteria for the allocation of the reserve, so that the funding goes where it is really needed. And we have made sure that aid can already be allocated at the end of this year, ”said MEP Pascal Arimont (EPP, BE).
The Chairman of the Committee on Regional Development, Younous Omarjee (La Gauche, FR), said: “We urgently needed to respond to the multifaceted Brexit crisis, which we did in an extremely short time with the reserve of Brexit adjustment. The BAR will be flexible and will help the citizens, businesses and sectors most affected. The requirements of the green pact are taken into account in the text, a minimum envelope dedicated to the fishing sector has been agreed, the regions and local communities can be better associated, and we have excluded financial services from the support of the fund ”.
Parliament will vote on the provisional deal in September.
On 25 December 2020, the Commission presented its proposal for the Brexit adjustment reserve, which will be put in place as a special instrument outside the budgetary ceilings of the multiannual financial framework (MFF) 2021-2027.