The Council today gave its final approval to a fund set up to help member states address the negative impact of Brexit.
According to the press release of the Slovenian Presidency of the EU, the fund of five billion euros (in 2018 prices) will support the regions, sectors and communities most affected to cover additional costs, to compensate for losses or to counteract the effects other negative economic and social consequences resulting directly from the UK Withdrawal from the European Union.
“The rapid approval of the reserve means that soon the necessary funding will be made available to the most affected European regions and companies, especially SMEs and their employees. Our goal is to help those most affected navigate through a difficult period of adjustment to the consequences of Brexit. This demonstrates solidarity from all member states with the most affected areas, “said Zvonko Černač Slovenian Minister for Development and European Cohesion Policy, Presidency of the Council
The reserve is a special special emergency instrument. It will support public and private businesses facing disruption of trade flows, including new costs for customs controls and administrative procedures. As the UK’s withdrawal from the EU has created an unprecedented situation, member states will have the flexibility to decide on the best actions to take in order to counter the various negative consequences.
In this regard, the establishment of the fund envisages an incomplete list of acceptable measures, ranging from support for SMEs, communities and regional and local organizations, including small-scale coastal fishing dependent on water fishing activities. of the United Kingdom, also as measures to support job creation and reintegration into the labor market of returned EU citizens.
The reserve will finance measures imposed from 1 January 2020 until 31 December 2023 to cover expenditures incurred before the end of the transition period.
The Council has decided to temporarily allocate all reserve resources, which at current prices stand at 5.4 billion euros, taking into account the negative impact of Brexit in each member state. The method for calculating the temporary distribution is determined by three main factors.
The largest amount of € 4.5 billion is allocated according to the importance of trade with the UK, € 656 million is allocated based on the importance of fishing in the UK exclusive economic zone, and € 273 million is distributed based on the importance of neighboring links to the regions maritime border with the United Kingdom.
In addition, to allow Member States to take swift action, most of the resources, € 4.3 billion, will be made available as pre-financing in three annual installments – in 2021, 2022 and 2023. The remaining resources will be made available in 2025, following a review of spending on eligible measures in previous years, which will also factorize any unused amount.
Today’s approval by the Council of the European Parliament of the position in the first reading, which was voted in plenary on 15 September, is the last legislative step and means that the Brexit regulation reserve has been approved. The regulation will enter into force the day after its publication in the Official Journal of the European Union in the first half of October.