The European Parliament and the European Council have agreed on a €5.4 billion “Brexit Fund” to absorb the negative consequences of Brexit in EU countries. The funds are intended for small and medium-sized businesses and regional and local coastal municipalities.
Elisa FerreraThe Cohesion and Reform Commissioner said: “The Reserve clearly shows European solidarity. The UK’s withdrawal from the European Union has had major economic and social repercussions across Europe. Fortunately, we now have the legal basis for paying first advance funding to those hardest hit by Brexit.”
Aid is in principle for all EU countries but will be provided primarily to those most affected by Brexit. This relates to trade with the United Kingdom, fishing in that Kingdom’s exclusive economic zone, and the importance of the neighborhood relations of the maritime border areas with the United Kingdom.
To receive the payments, EU countries must provide the Commission with details of the bodies that will manage and control the funds from the reserve. They must do so within two months after the legislation enters into force. They must also confirm that they have established a management and control system.
On December 25, 2020, the Commission submitted its proposal for the creation of the reserve, following the announcement of the European Council on July 17-21, 2020. EU legislation establishing a “Brexit Fund” will be published in the Official Gazette on October 8.