Parliament is now ready to negotiate with Council the details of the fund to help EU countries to counter the adverse consequences of the UK’s withdrawal.
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Support focused on countries and sectors worst affected by Brexit
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Eligibility period covers investments made from 1 July 2019 to 31 December 2023
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Banking and financial sectors are excluded from support
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Specific commitment to fisheries and communities dependent on UK waters
Parliament adopted on Wednesday its position regarding the €5 billion Brexit Adjustment Reserve (in 2018 prices – €5.4 billion in current prices). Talks with the Council will start on 9 June and MEPs intend to reach a political agreement on 17 June so that funds will be available quickly.
The main points of Parliament’s negotiating mandate are:
– A pre-financing tranche of €4 billion disbursed in two equal instalments in 2021 and 2022, with the remaining €1 billion paid in 2025;
– Eligibility period covers costs incurred from 1 July 2019 to 31 December 2023 in preparation for the expected negative Brexit effects;
– An allocation method based on three factors: the importance of trade with the UK, the importance of fisheries in the UK exclusive economic zone and the population living in maritime regions bordering the UK;
– Focus on SMEs and self-employed, job creation, and reintegration of EU citizens returning from the UK as a consequence of Brexit;
– Financial and banking sector are excluded from support;
– Small-scale fisheries and local communities dependent on fishing activities in UK waters shall receive at least 7% of national allocation (for countries concerned).
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