Brexit: €5 billion to help EU countries mitigate social and economic impact

(Credit: Unsplash)

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

The Brexit Adjustment Reserve should primarily support the countries and sectors worst affected by the withdrawal of the United Kingdom from the EU.

On Tuesday, the Regional Development Committee adopted its position on the Brexit Adjustment Reserve (BAR), paving the way to start negotiations with the Council on the final shape of the tool. The draft report was approved by 35 votes in favour, one against and 6 abstentions.

The 5 billion euro fund (in 2018 prices – €5.4 billion in current prices) will be set up as a special instrument outside of the 2021-2027 Multiannual Financial Framework (MFF) budget ceilings.

MEPs want the resources to be disbursed in three tranches:

– pre-financing of 4 billion euro in two equal instalments of 2 billion euro in 2021 and 2022;

– the remaining 1 billion euro in 2025, distributed on the basis of the expenditure reported to the Commission, taking into account the pre-financing.

Allocation method

According to this new method, Ireland will be by far the largest beneficiary in absolute terms, followed by the Netherlands, France, Germany and Belgium.

Eligibility of funds

Under Parliament’s proposal, the Reserve will support public expenditure incurred from 1 July 2019 to 31 December 2023, compared to the period of 1 July 2020 to 31 December 2022 proposed by the Commission. The extension would allow member states to cover investments made prior to the end of the transition period, on 1 January 2021, in preparation for the expected negative effects of Brexit.

MEPs also demanded that financial and banking entities benefitting from the UK’s withdrawal from the EU be excluded from receiving support from BAR.

To be eligible for aid, measures have to be specifically set up in relation to the withdrawal of the UK from the European Union, including, support to:

– SMEs and those who are self-employed to overcome the increased administrative burden and operational costs;

– small-scale fisheries and local communities dependent on fishing activities in UK waters (at least 7% of national allocation for countries concerned), and

– help EU citizens who left the UK to reintegrate.


“We must ensure that EU aid reaches the countries, regions, companies and people most affected by Brexit. European companies already suffering from the COVID-19 crisis shouldn’t pay twice for the Brexit debacle. That is why this reserve is so important and needs to be paid out as soon as possible, on the basis of statistical and measurable data”, maintained Pascal Arimont (EEP, BE), rapporteur.

Regional Development Committee Chair, Younous Omarjee (The Left, FR), said: “The committee has shown remarkable unity. We have amended the regulation to make it as operational as possible, as close as possible to the expectations of the regions and sectors affected by the UK’s withdrawal from the EU. We are determined to move quickly and we expect the Council to display the same determination and, therefore, be flexible in the negotiations, in order to conclude the trilogue on time.”

Next Steps

Parliament is expected to confirm the draft mandate during its first plenary sitting in June. Talks with the Council will then start immediately with the aim of finding an overall agreement with Portuguese Presidency in June.


On 25 December 2020, the Commission presented its proposal for the Brexit Adjustment Reserve, a financial tool to help EU countries to counter the adverse economic and social consequences of UK withdrawal.

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

What changes in the EU as from today

America writes-off Iran, blocks Europe’s Tehran talks

This is how to speed up ocean-climate ambition towards COP26

Statement by Cecilia Malmström, Member of the EC in charge of Trade, on the successful conclusion of the final discussions on the EU-Japan Economic Partnership Agreement (EPA) – Brussels, 08 Dec 2017. (Copyright: European Union; Source: EC - Audiovisual Service; Photo: Georges Boulougouris)

The EU and Japan seal free trade pact that will cover 30% of global GDP

The moment of truth for global energy transition is here

UN chief reaffirms commitment to untying ‘Gordian knot’ of Middle East conflict and instability

Great Reset: Why LGBT+ inclusion is the secret to cities’ post-pandemic success

Thursday’s Daily Brief: STIs worldwide, food safety and food prices, updates on Iraq and East Africa

This is how AI can help you make sense of the world

3 reasons why most Africans aren’t on the internet – and how to connect them

Are e-cigarettes as safe as they claim to be?

New citizenship law in India ‘fundamentally discriminatory’: UN human rights office

What is the Internet of Things?

Hungary has made progress on greening its economy and now needs to raise its ambitions

Conflict of interest and misuse of EU funds: The case of Czech PM Babiš

COVID-19 could widen the digital gap. Here’s what’s needed now.

Data is the fuel of mobility. Don’t spill it for nothing

Why the UK government must do more to boost green revolution

Coronavirus emergency: here’s what we know so far

Brexit: With May gone the Tory divide is to sink the UK despite Brits wanting to ‘Remain’

Turkey: MEPs cut support by €70m due to no improvement in respect for EU values

Humanitarian aid: EU mobilises over €18 million for the Central African Republic in 2019

Cocaine and opium production worldwide hit ‘absolute record highs’ – major threat to public health says UN study

Million across Yemen ‘just a step away from famine’, with food available but inaccessible

38th ACP-EU Assembly: dialogue on cooperation challenges in Kigali

A Sting Exclusive: “Leading by example! EU must push for UN deal to avoid dangerous climate change”, European Parliament Vice-President Ulrike Lunacek cries out from Brussels

The ECB still protects the banks at the expense of the EU taxpayers

Governments, businesses ‘walk the talk’ for investment in sustainable development: UN forum

28 million elective surgeries may be cancelled worldwide: how non-COVID-19 medical care is suffering

Take action on air pollution to save lives, and the planet, urges UN chief

Renewed pressures on Berlin to adopt growth policies

Harnessing the power of nature in the fight against climate change

Aid spending fell in 2018, for the second year in a row

These are the benefits of learning a second language

Can collective action cure what’s ailing our food systems?

How supporting climate action on a local level can transform the world

EU launches €100 million humanitarian initiative to support COVID-19 vaccination campaigns in Africa

Improving Italy’s capital market will boost growth opportunities for Italian companies and savers

Is poverty and exclusion the necessary price for EU’s recovery?

The Indian miracle state pointing the way to global sustainability

EU job-search aid worth €9.9 million for 1,858 former Air France workers

How drones can manage the food supply chain and tell you if what you eat is sustainable

Nagorno-Karabakh: EU allocates additional €3 million in humanitarian aid for conflict-affected civilians

Northern Bahamas ravaged by ‘disaster of epic proportions’ as UN releases $1 million in emergency funds

Sustainable investment continues to gain momentum

EU-Japan relations: Foreign Affairs MEPs back Strategic Partnership Agreement

Asylum: more solidarity among EU member states and funds for frontline countries

Security Council hails ‘historic and significant’ joint peace declaration by Ethiopia and Eritrea

Parliament gives green light to EU-Singapore trade and investment protection deals

Lithuania finds the ways to maintain its energy security

The new EU “fiscal compact” an intimidation for all people

Let Nagasaki remain ‘the last city’ to suffer nuclear devastation says museum director, as UN chief arrives

New EU rules cut red tape for citizens living or working in another Member State as of tomorrow

“Our house is on fire.” 16 year-old Greta Thunberg wants action

This man ran across the USA to raise awareness of plastic pollution

This warehouse is one of the world’s greenest industrial buildings

FROM THE FIELD: Watering the parched farmland of São Tomé and Príncipe

Cédric in India

Why Eurozone can afford spending for growth

Early signs of growth in Eurozone?

More Stings?

Speak your Mind Here

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

You are commenting using your 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