On Tuesday, the local development committee took a stand on the Brexit adjustment reserve, paving the way for discussions with the council on the final version of the device. 35 votes in favor of the draft report, 1 against, 6 abstentions.

The fund of five billion euros (at 2018 prices – 5.4 billion euros at current prices) will be created as a separate tool of the Multinational Financial Framework (MFF) 2021-2027 budget.

MEPs want resources to be provided in three installments:

– Pre-financing of നാല് 4 billion in two equal installments of 20 billion in 2021 and 2022; And

– The remaining യൂറോ 1 billion by 2025 has been disbursed on a pre-financing basis based on the cost of communicating with the European Commission.

Method of distribution

MEPs demand that three factors be used to calculate how much each country will receive: the size of trade with the UK, the size of fishing in the UK Special Economic Zone, and the population living in maritime areas within the boundaries of the United Kingdom.

According to this new method, Ireland will still be the full beneficiary country, followed by the Netherlands, Germany, France and Belgium.

Eligibility of funds

In accordance with the recommendations of Parliament, the Reserve will support public spending from July 1, 2020 to December 31, 2022, as recommended by the Commission, and from July 1, 2019 to December 31, 2023. This extension will allow member states to prepare for the expected reversal of Brexit on January 1, 2021, before the end of the transition period.

The MEPs also demanded that financial and banking institutions that benefited from the UK withdrawal from the European Union be excluded from support for the Brexit Adjustment Reserve.

In order to qualify for assistance, the United Kingdom must take special action in connection with the withdrawal from the Union, especially support:

– SMEs and self-employed workers to overcome the increased administrative burden and operating costs;

– Land fishing and local communities dependent on UK waters for fishing activities (at least 7% of the national share for the countries concerned); And

– Reunification of EU citizens leaving the UK.

Source

Reporter Pascal Arimond (EPP, BE) said: “We need to make sure that EU aid reaches the countries, regions, businesses and people most affected by Brexit. European businesses already experiencing the Covid-19 crisis should not have to pay twice for the Brexit defeat. This is why this reserve is so important and should be provided as soon as possible based on statistics and measurable data. “

Younes Omarji (Left, FR), Chairman of the Local Development Committee, said: “The Regional Development Committee has shown remarkable unity. We have amended the rules to make them as effective as possible, and areas that have been affected by the UK’s withdrawal from the European Union are closer to regional expectations. We hope that the Council will act expeditiously and show the same determination and, therefore, give in between discussions to conclude the discussions in a timely manner.

Next steps

Parliament is expected to confirm the draft order in the first plenary session in June. Negotiations with the Council may begin soon with the aim of reaching a comprehensive agreement with the Portuguese presidency in June.

Context

Presented by the European Commission on December 25, 2020 Suggestion for Brexit adjustment reserve collection, An economic tool designed to help EU countries cope with the adverse economic and social repercussions of the UK withdrawal from the EU.