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News article6 October 2021Directorate-General for Communication

European Commission welcomes the adoption of the Brexit Adjustment Reserve

The European Commission welcomed today the adoption and signature by the co-legislators of the Regulation establishing the Brexit Adjustment Reserve (BAR).

EU and UK flags

With an amount of €5.4 billion in current prices, the BAR will counter the adverse consequences of the withdrawal of the United Kingdom from the EU for small and medium-sized companies, regional and local coastal communities in the EU.

European Commissioner for Cohesion and Reforms, Elisa Ferreira, said: “The BAR is a clear expression of European solidarity. The withdrawal of the United Kingdom from the EU has had significant adverse economic and social effects all across Europe. I am now happy to say that we have the legal basis to disburse the first amounts of pre-financing to help those most affected by Brexit.”

All EU Member States will benefit from the BAR resources, but the allocation will be focused on those hardest hit by the UK's withdrawal, especially with regard of trade with the UK, fisheries within the UK's exclusive economic zone and the importance of neighbouring links for the maritime border regions with the UK. The largest part, €4.3 billion, will be disbursed as pre-financing in three annual instalments until 2023 while the remaining resources will be made available in 2025.

To receive the first payments, Member States need to notify the Commission, within two months after the entry into force of the Regulation, the identity of the bodies responsible for the management and audit of the Reserve and confirm that they have drawn up the management and control system. On 25 December 2020, the Commission put forward its proposal for the creation of the BAR following the announcement of the European Council of 17-21 July 2020.

The BAR Regulation will be published on 8 October in the Official Journal.

 

Details

Publication date
6 October 2021
Author
Directorate-General for Communication

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