Brexit: the Commission proposes the creation of a Brexit Adjustment Reserve

(Christian Lue: Unsplash)

This article is brought to you in association with the European Commission.


The European Commission has put forward its proposal for a Brexit Adjustment Reserve, as agreed by the European Council in July, to help counter the adverse economic and social consequences – at the end of the transition period on 31 December 2020 – in the Member States and sectors that are worst affected. It will have an overall budget of €5 billion. The Reserve will support businesses and employment in affected sectors. It will assist regions and local communities, including those dependent on fishing activities in UK waters. It can also assist public administrations for the proper functioning of border, customs, sanitary and phytosanitary controls and to ensure essential services to the citizens and companies affected.

Commissioner for Cohesion and Reforms Elisa Ferreira said: “The end of the transition period on 31 December 2020 will have an important economic and social impact on regions and local communities that are most linked to the UK’s economy and trade. By proposing the Brexit Adjustment Reserve, the Commission puts again solidarity and cohesion as key elements of its response, making sure that those most impacted receive the necessary support.“

Commissioner for Budget and Administration Johannes Hahn said: ”We designed this Reserve to provide swift and uncomplicated help, focusing on those EU Member States most adversely affected by Brexit. I now count on the Council and the European Parliament to convert our proposal into concrete financial support without delay. Of course, adapting structurally to our new relationship with the UK will require much more long-term adjustment than this reserve alone will ever be able to provide. The powerful new EU budget will support this work.”

Scope and measures supported

The Brexit Adjustment Reserve will be rapid and flexible, and will cover expenditure in any Member State over a period of 30 months. It will be distributed in two rounds:

  • the vast majority of the €5 billion through pre-financing in 2021, calculated on the basis of the expected impact of the end of the transition period on each Member State’s economy, taking into account the relative degree of economic integration with the UK, including trade in goods and services, and the negative implications on the EU fisheries sector;
  • a smaller tranche of additional support in 2024, in case the actual expenditure exceeds the initial allocation , thus justifying the need for additional solidarity from the EU. To qualify for reimbursements from the Brexit Adjustment Reserve, Member States have to demonstrate their claims’ direct relation to Brexit. The usual financial control and management system for EU funds will apply.

The Reserve can support measures such as:

  • support to economic sectors, businesses and local communities, including those dependent on fishing activities in the UK waters;
  • support to employment, including through short-time work schemes, re-skilling and training;
  • ensuring the functioning of border, customs, sanitary and phytosanitary and security controls, fisheries control, certification and authorisation regimes for products, communication, information and awareness raising for citizens and businesses.

Next steps

The proposed Regulation will have to be adopted by the Parliament and the Council.

Background

The United Kingdom left the European Union on 1 February 2020. Even with the new EU-UK Trade and Cooperation Agreement in place, there will be big changes at the end of the transition period on 1 January 2021. On that date, the UK will leave the EU Single Market and Customs Union, as well as all EU policies and international agreements. It will put an end to the free movement of persons, goods, services and capital with the EU.

The EU and the UK will form two separate markets; two distinct regulatory and legal spaces. This will recreate barriers to trade in goods and services and to cross-border mobility and exchanges that have not existed for decades – in both directions, affecting public administrations, businesses, citizens and stakeholders on both sides. This will have broad and far-reaching consequences for businesses, citizens and public administrations. The Commission has been working with the Member States and their administrations to help preparations and boost readiness. The European Council conclusions, agreed at its special meeting of 17-21 July 2020, to provide for the establishment of a new special Brexit Adjustment Reserve ‘to counter unforeseen and adverse consequences in Member States and sectors that are worst affected’.

For More Information

Questions & Answers: The Brexit Adjustment Reserve explained

European Commission webpage: “The EU and the United Kingdom – Getting ready for the end of the transition period”

the sting Milestones

Featured Stings

Can we feed everyone without unleashing disaster? Read on

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

Training for staff in early childhood education and care must promote practices that foster children’s learning, development and well-being

These countries have the most nuclear reactors

Record numbers of people in the UK have applied to study nursing

The British “nonsense”, the relaxed Commissioner and the TTIP “chiaroscuro” at this week’s Council

‘A trusted voice’ for social justice: Guterres celebrates 100 years of the International Labour Organization

Kids who live in the countryside have better motor skills, a study in Finland has found

“No labels for entrepreneurs!”, a young business leader from Italy cries out

Code of Practice on disinformation: Commission welcomes new prospective signatories and calls for strong and timely revision

No way out for Eurozone’s stagnating economy

South Sudan: UN calls for end to inter-communal clashes, attacks against aid workers

Here’s why human-robot collaboration is the future of manufacturing

JADE Spring Meeting 2017– day 1: Excellence awards, panel discussion, keynote speeches

EC v Samsung: A whole year to compile a case

Can medical students be prepared for Global Health ethical issues?

UN rights chief ‘strongly’ condemns ‘shocking’ mass executions in Saudi Arabia

Countries are piling on record amounts of debt amid COVID-19. Here’s what that means

Young activists do the talking as UN marks World Children’s Day

Some endangered languages manage to thrive. Here’s how

Irish Presidency: Not a euro more for EU budgets

European Citizens’ Initiative: Commission decides to register ‘Right to Cure’ initiative

7 ways to break the fast fashion habit – and save the planet

Global warming: our responsibility

COVID-19 has hit Black Americans hardest. Healing this divide would lift the nation

Will COVID-19 usher in a new culture of outdoor living and dining?

From Hangzhou to Rwanda: how Jack Ma brought Chinese e-commerce to Africa

Indonesian tsunami death toll climbs over 400 as Government-led relief efforts are stepped up

The importance of including palliative care in the Universal Health Coverage and how to achieve it

5 Ways Companies Can Progress More Women into Leadership Roles

Health Care Workers’ Safety and Health as Assets in the Fight Against COVID-19

GSMA announces speakers for Mobile 360 Series-West Africa

This is how we make basic income a reality

Revealed: danger and squalor for cleaners who remove human waste by hand

‘Global trust’ declining, ‘our world needs stepped-up global leadership’

UN Envoy ‘confident’ deal can be reached to avert further violence around key Yemeni port city

EU boosts humanitarian aid budget for 2021 as needs rise

The final countdown towards achieving the 2030 Agenda: the contribution of future health(care) professionals

Vaccine nationalism – and how it could affect us all

Investing in health workers yields ‘triple dividend’, WHO chief says in New Year’s message

Palliative care and Universal Health Coverage: how to advocate for the inclusion of palliative care in UHC

Commission (Eurostat) publishes first statistics on short-stay accommodation booked via collaborative economy platforms

Overcoming the paralysis of trust management across a fractured IT landscape

AI can help us unlock the world’s most complex operating system – the human body

Human rights breaches in Eritrea, Nicaragua and Saudi Arabia

Cross-border travel is confusing after COVID – this framework can help borders reopen safely

EU car manufacturers worry about an FTA with Japan

CLIMATE CHANGE FOCUS: Cutting emissions, one bog at a time

Artificial Intelligence in policing: safeguards needed against mass surveillance

World Cancer Day: Here’s how perceptions about the disease differ around the world

Italy’s rescue operation Mare Nostrum shuts down with no real replacement. EU’s Triton instead might put lives at risk

Europe bows to Turkey’s rulers, sends Syrian refugees back to chaos

Global Citizen-Volunteer Internships

Mobile World Congress 2021: Barcelona 08 June-01 July

Darfur peace process at a ‘standstill’ as demonstrations against Sudanese Government continue

Achieving targets on energy helps meet other Global Goals, UN forum told

When Can Everyone Pluck the Grapes?

These vending machines are giving out free short stories to London commuters

Brexit casts a shadow over the LSE – Deutsche Börse merger: a tracer of how or if brexit is to be implemented

There’s a single-use plastic you’ll throw away today without realising

Malaria could be gone by the middle of the century. Here’s how

Impact of high-fats food regimen on immune activity, tumor growth.

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: