A preliminary deal has been reached on a € 5 billion fund to mitigate the effects of Britain’s exit from the European Union

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A major step was taken today towards the approval of a five billion euro fund to deal with the consequences of the UK’s withdrawal, as the European Council and Parliament have reached a preliminary agreement on the project settlement.

The deal means funding can start to flow from the Brexit Amendment Reserve before the end of the year.

The reserve aims to support all Member States, focusing on the regions and sectors most affected.

Today’s deal is a strong signal that European sectors, businesses and workers at risk of being affected by Brexit will receive urgent and timely support. We take swift action to help them deal with any negative and unexpected consequences.

Augusto Santos Silva, Minister of State and Foreign Affairs of Portugal, Presidency of the Council

The fund is a special and unique emergency tool.

It will be used, among other things, to compensate companies for lost business, to preserve jobs, to help fishing communities and to put in place customs controls in ports.

The main condition for reimbursement to public authorities and private companies is that the costs incurred are directly linked to tackling the negative effects of leaving the United Kingdom.

Participating lawmakers agreed that the reserve would cover, in whole or in part, measures taken by member states between January 1, 2020 and December 31, 2023. This deadline takes into account the need for mitigation measures before the end of the period. the period. A period of transition.

Advance financing

The full EUR 5 billion (at 2018 prices) will be paid provisionally to Member States from the outset.

80% of the total amount, or 4 billion euros, will be disbursed in pre-financing: 1.6 billion euros in 2021, 1.2 billion euros in 2022, 1.2 billion euros in 2021. Euros in 2023.

The remaining billion euros will be made available in 2025 and its distribution among Member States will depend on how the funding has been used in previous years, also taking into account any unused amounts.

Assigned

Brexit has a mixed impact on different Member States, regions and sectors.

With this in mind, participating legislators agreed that the attribution method should be based on three main factors:

The value of fish caught in the exclusive economic zone of the United Kingdom
The importance of trade with the United Kingdom
Residents of areas which have a maritime border with the United Kingdom

A total of € 600 million will be allocated under the fisheries factor, € 4,150 million under the trade factor and € 250 million under the maritime factor.

next steps

The preliminary agreement between the Portuguese Presidency of the Council and the negotiators of the European Parliament must be approved by the two institutions before the regulation is adopted.

This page will be updated with a link to the text of the original agreement.

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