Brexit adjustment reserve – Regional policy

The withdrawal of a Member State from the EU is an unprecedented situation both for the EU as a whole and for its Member States. BREXIT will affect all Member States, but in different ways. Some Member States, regions, sectors or local authorities will be more affected than others. This is why the proposal is designed to support all Member States while ensuring a strong focus on those most affected. The design of the Brexit Adjustment Reserve takes these specific circumstances into account: it does not require programming or advance planning of measures and provides for flexibility in implementation and in accordance with the principle of subsidiarity.

The regulation came into effect in October.

Next steps

Notification – The Commission will proceed swiftly with the adoption of the financing decision (s) to ensure that Member States can still receive aid in 2021. Member States are invited to use the usual channels to communicate with the Commission.

In order to receive the first installment of the pre-financing by the end of this year, we invite the Member States to notify the Commission before November 8 in accordance with Article 14 (1) (d) of the RAB Regulation. In view of the legal steps required before disbursement, the Commission will not be able to ensure payments to Member States who submit their notifications after this deadline.

How much money is available?

The maximum amount available for the Reserve will be 5.4 billion euros. All the amounts on this page are expressed in “current prices” (ie including the indexation of the annual amounts over the period). A special temporary instrument outside the EU budget ceilings of the multiannual financial framework 2021-2027 has been put in place for this purpose.

How will the resources be distributed?

The maximum amount has been provisionally distributed among Member States and will be disbursed in two allocation cycles. The first round (80%) will be activated in the form of pre-financing, paid in three installments of approximately 1.7 billion euros in 2021, and 1.3 billion euros by April 2022 and 1.3 billion euros. ‘euros by April 2023; the remaining amount of € 1.1 billion – will be paid in 2025 to reimburse the eligible costs actually incurred and paid by the Member States in the framework of the implementation of the measures eligible for support.

The financial contribution from the reserve to a Member State will be implemented under shared management, the contribution being used.

Resource allocation

According to the regulation, three factors will be used to calculate how much money each EU country will receive from the reserve:

  • Factor related to fish caught in UK EEZ is used to allocate € 656m
  • The trade factor is used to allocate 4.5 billion euros
  • The factor related to maritime border regions with the United Kingdom is used to allocate € 274 million

Member States that are heavily dependent on fishing will have to devote a specific percentage of their national allocation to small-scale inshore fishing and to local and regional communities dependent on fishing activities.

What types of measures will the Reserve finance and over what period?

The reserve will support the measures specifically put in place in relation to the United Kingdom’s withdrawal from the Union. They may include the following:

  • support to economic sectors, businesses and local communities, and organizations, including small-scale inshore fishing, dependent on fishing activities in UK waters;
  • support for job creation and protection, including through part-time work, retraining and training programs;
  • measures aimed at reintegration of Union citizens as well as persons entitled to reside in the territory of the Union who have left the United Kingdom, following the withdrawal of the United Kingdom from the Union
  • ensure the border operation, customs, sanitary, phytosanitary and security controls, fisheries control, certification and authorization regimes
  • communication measures, informing and raising the awareness of citizens and businesses on the evolution of their rights and obligations resulting from the United Kingdom’s withdrawal from the Union.

The reference period for expenditure begins with retroactivity from January 1, 2020 to December 31, 2023. The expenditure is eligible for a financial contribution from the reserve also for measures postponed before the reference period but incurred and paid by state authorities members, at national, regional or local level during the reference period.

Will the fishing sector receive specific support from the Reserve?

The UK’s withdrawal from the EU poses specific risks for the fishing industry in terms of less favorable access to UK waters and other changes resulting from Brexit. Thus, part of the contribution from the reserve will be reserved for the Member States most concerned (beyond the 10 million contribution of the fishing criteria in the allocation method). At least 50% of this amount or 7% of their provisionally allocated amount, whichever is less, should be spent on measures to support local and regional coastal communities, including the fisheries sector, in particular the sector. small-scale coastal fishing dependent on fishing activities. The scope will relate to measures in support of regional and local communities and organizations, including small-scale inshore fishing, dependent on fishing activities in UK waters in the waters of its Special Status Territories or in waters covered by fishing agreements with coastal states where fishing opportunities for EU fleets have been reduced following the UK’s withdrawal from the Union. If the allocation threshold is not completely reached, 50% of the unused allocated amount will be deducted in the calculation of the total accepted amount.

Legal basis

  • Full text of the BAR regulation on Eur-Lex: 08/10/2021
  • RAB statement on additional measures to protect the EU budget and EU Next Generation (NGEU) resources against fraud and irregularities by requiring the mandatory use of a single exploration tool data provided by the Commission: 08/10/2021
  • Commission implementing decision on the provisional amounts allocated by Member State: 08/10/2021

Fund

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