17/06/2022 07:27
The Commission has approved the disbursement of 627 euro million in pre-financing under the Brexit Adjustment Reserve to Cyprus, Germany, Greece, and Hungary, to compensate for the consequences of Brexit on their economies.
The funds will be allocated on the basis of each member state’s economic ties with the UK.
The Brexit Adjustment Reserve will provide a total of 5.4 billion euro to member states. The allocation of these resources will be made on the basis of a technical formula.
Out of the 5.4 billion, 656 million euro will be allocated based on fish caught in the UK EEZ, 4.5 billion will be allocated based on trade with the UK and 274 million will be allocated based on each country’s maritime border regions with the UK.
Out of the total amount approved in pre-financing, 435 million euro will be made available in 2022 and the 192 million euro remaining will be available by the end of April 2023.
This funding is intended to help mitigate the adverse impact of Brexit on their economies and regions through support to regions and economic sectors, small and medium sized companies, as well as job creation and protection, such as short-time work schemes, re-skilling, and training.
“Now it is up to Member States to make the best use of the available funding to support regions, local communities, citizens and small and medium businesses to diversify their activities, keep jobs and reskill the workforce where necessary” said Commissioner for Cohesion and Reforms, Elisa Ferreira in a statement.
The pre-financing amounts are spread over three years and Member States may use the funding until 31 December 2023 to cover expenses incurred and paid since 1 January 2020.
With this decision, 20 Member States will soon have received the first and second installment of their pre-financing.
Brexit has had a negative impact on all Member States, but in different ways, as some Member States, regions, sectors, or local communities are more affected than others. The Brexit Adjustment Reserve will provide a total of 5.4 billion euro to member states.