A major step was taken today towards approval of a five billion euro fund to deal with the consequences of the UK’s withdrawal, as the European Council and Parliament reached a preliminary agreement on the draft regulation.
The agreement means that funding can begin to be disbursed from the Brexit Amendment Reserve before the end of the year.
The reserve aims to support all member states, focusing on the most affected regions and sectors.
The agreement reached today is a strong signal that European sectors, businesses and workers at risk of being hurt by Brexit will receive urgent and timely support. We are taking prompt action to help them deal with any negative and unexpected consequences.
Augusto Santos Silva, Minister of State and Foreign Affairs of Portugal, Presidency of the Council
The fund is a special and unique emergency tool.
It will be used, among other things, to compensate companies for lost business, preserve jobs, help fishing communities, and put in place customs controls at ports.
The main requirement for reimbursement to public authorities and private companies is that the costs incurred are directly related to combating the negative effects of departure from the UK.
The participating lawmakers agreed that the reserve would cover, in whole or in part, the measures taken by member states between January 1, 2020 and December 31, 2023. This deadline takes into account the need for mitigation measures before the end of the period. Transitional period .
Advance financing
The entire €5 billion (at 2018 prices) will be given provisionally to member states from the start.
80% of the total amount, i.e. 4 billion euros, will be disbursed as pre-financing: 1.6 billion euros in 2021, 1.2 billion euros in 2022, 1.2 billion euros in 2021. Euros in 2023.
The remaining 1 billion euros will be made available in 2025 and its distribution among the member states will depend on how the funding was used in previous years, also taking into account the unused amounts.
Assigned
Brexit has a mixed impact on different member states, regions and sectors.
With this in mind, the participating legislators agreed that the allocation method should be based on three main factors:
The value of fish caught in the UK’s exclusive economic zone
The importance of trade with the United Kingdom
Residents of areas that have a maritime border with the United Kingdom
In total, 600 million euros will be awarded under the fishing-related factor, 4,150 million euros under the trade-related factor and 250 million euros under the marine-boundary factor.
next stages
The preliminary agreement between the Portuguese Presidency of the Council and the negotiators of the European Parliament must be approved by the two institutions before the regulation is adopted.
This page will be updated with a link to the text of the initial agreement.
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