A €5 billion Brexit adjustment reserve was adopted by the Council of the European Union on the 28th of September. The hardest hit regions, sectors, industries and communities will receive the support of five billion euros (in 2018 prices) to cope with the UK’s withdrawal from the EU.
The fund aims at helping the most vulnerable navigate through a difficult period of adjusting to Brexit. According to the Council, the allocation of the money will be done in accordance with the importance of trade with the UK, maritime neighboring links and the importance of fisheries in the UK’s exclusive economic zone.
The support to private and public entities has a non-exhaustive list of measures that might be eligible for this financial assistance. €4.3 billion will be made available as pre-financing in three annual tranches – in 2021, 2022 and 2023. After a review of the expenditure on eligible measures in the previous years, the other resources will be made available in 2025.
The Council adopted the European Parliament’s position at first reading, which means that the regulation will enter into force after its publication in the Official Journal of the European Union in a few weeks, in the mid-October.