Agreement on the “Brexit Adjustement Reserve”: “Quick assistance for regions and businesses most affected by Brexit”

Today, the European Parliament and EU Member States reached an agreement on the so-called “Brexit Adjustment Reserve” (BAR). The negotiator for the Parliament, Pascal Arimont (EPP), declares: “We have kept our promise. We wanted a quick European response and swift assistance to regions and businesses suffering from the negative effects of Brexit. That is what we have managed to do with today’s agreement. We set out clear criteria for the allocation of the reserve, so that funding goes where it is actually needed. And we made sure the assistance can already be allocated from the end of this year”.

The Brexit Adjustment Reserve (BAR) with an overall budget of 5 billion euro (2018 prices - 5.4 billion euro in current prices) will support the member states, regions and sectors most affected by the UK’s withdrawal from the EU. The funds will be disbursed in several instalments: an initial tranche of 1.6 billion euro will be available by December 2021. A second tranche of 1.2 billion euro will be disbursed in early 2022, a third tranche of 1.2 billion euro will be disbursed in early 2023 and the remaining billion in 2025. The European Parliament and Member States agreed that measures introduced between 1 January 2020 and 31 December 2023 to mitigate the effects of Brexit will be covered. Member states that depend significantly on fisheries will have to direct a specific percentage of their national allocation to small-scale coastal fisheries and local and regional communities dependent on fishing activities.

“We agreed with the Council on clear and measurable criteria for the allocation of funds, so the hardest hit countries, regions and businesses shall receive the largest contributions from the reserve. The fact that we have reached agreement within a single EU Presidency – that is, within six months – shows that we have done everything in our power to swiftly and effectively counteract the negative consequences of Brexit, such as difficult trade links for small and medium-sized enterprises to the UK. Companies that are already suffering enough from supply shortages and the coronavirus pandemic should not also bear additional burdens due to Brexit. With this agreement, the EU is demonstrating its support for the businesses, regions and countries most affected”.