Brexit Adjustment Reserve
The Brexit Adjustment Reserve aims to help counter the adverse economic and social consequences in the Member States and sectors that are worst affected.
Initial allocations to Member States is valued at €5.4 billion in current prices. The initial allocation proposed for Ireland is more than €1 billion in current prices - almost a quarter of the initial allocation of €4.2 billion that will be made from the Reserve in 2021. Further funding of €1.1 billion in current prices will be made available to the EU-27 in 2024.
Scope and measures supported
The Brexit Adjustment Reserve will be rapid and flexible and will cover expenditure in any Member State over a period of 30 months.
It will be distributed in two rounds:
the vast majority through pre-financing in 2021, calculated on the basis of the expected impact of the end of the transition period on each Member State's economy, taking into account the relative degree of economic integration with the UK, including trade in goods and services, and the negative implications on the EU fisheries sector;
smaller additional support in 2024, in case the actual expenditure exceeds the initial allocation, thus justifying the need for additional solidarity from the EU.
To qualify for reimbursements from the Brexit Adjustment Reserve, Member States must demonstrate their claim directly relates to Brexit.
The Reserve can support measures such as:
support economic sectors, businesses and local communities, including those dependent on fishing activities in the UK waters;
support employment, including through short-time work schemes, re-skilling and training;
ensuring the functioning of border, customs, sanitary and phytosanitary and security controls, fisheries control, certification and authorisation regimes for products, communication, information and awareness raising for citizens and businesses.
For further information visit the Brexit Adjustment Fund.