The Minister for Finance, Paschal Donohoe T.D., today (Tuesday) welcomed the European Commission’s proposal on the Brexit Adjustment Reserve, which aims to provide financial support to the Member States and sectors most adversely affected by the UK’s withdrawal from the EU.
The Commission shared the initial allocations to Member States from the Brexit Adjustment Reserve last night, which is valued at a total of €5.4 billion in current prices.
The initial allocation proposed for Ireland is more than €1 billion in current prices. This is 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.
Ireland’s proposed allocation reflects the extensive engagement that the Government Ministers have undertaken to present the unique, adverse and disproportionate impact of Brexit on Ireland. The allocation reflects the solidarity that comes with EU membership, which has been evident from our EU partners throughout the Brexit process.
Financing under this reserve will supplement the national efforts made to date, and provide much-needed further support to local communities, businesses, economic sectors and the State in our adjustment to the new environment we are entering.
Speaking following the Commission’s announcement, Minister Donohoe said: ‘Ireland will work closely with our fellow Member States and with the European Parliament to negotiate agreement on the Reserve as quickly as possible. This agreement must reflect the challenges we face in adjusting to Brexit, as a Union, and for Ireland in particular as the most-affected Member State, and provide for fast and flexible funding’.
The Council of the EU and the European Parliament agreed, as part of the Multiannual Financial Framework 2021-2027, to create a Brexit Adjustment Reserve of €5 billion (to be updated in line with inflation) to provide financing to counter unforeseen and adverse consequences in Member States and sectors that are worst affected by the UK’s withdrawal from the EU. The proposal announced last night is the next step towards creating a legal instrument so that this funding can be spent.