Are you an exporter, importer or logistics service provider and has the departure of the United Kingdom (UK) from the European Union (EU) affected your business? Or are you a fisherman and did Brexit have a negative impact on your business? To help you with this, the EU is making money available, the so-called Brexit Adjustment Reserve (BAR).
With the UK’s departure from the EU, many companies became active outside the EU for the first time. These companies had to adapt to the applicable and partly unknown customs legislation in the EU and the UK and to the requirements in the field of testing and certification of processes and products. Many adjustments were also made for companies that already had a lot of experience with customs legislation. However, some Member States, regions, sectors or local communities will be more affected than others. This is why the proposal is designed to support all Member States while ensuring a strong concentration on those most affected.
The Brexit Adjustment Reserve is a one-off emergency instrument. It will be spent on, among other things, compensating companies for lost trade, preserving jobs and helping fishing communities.
The main requirement for compensating both public authorities and private companies is that the costs incurred must be directly related to countering the adverse effects of the UK’s withdrawal.
It has been agreed that the reserve will cover all or part of measures introduced by Member States between 1 January 2020 and 31 December 2023. This time frame considers the need for mitigating measures before the end of the transition period.
The €5.34 billion will be provisionally allocated to Member States in advance.
Of the total amount (€5 billion in 2018 prices):
- 80% or €4 billion will be disbursed as pre-financing: €1.6 billion in 2021, €1.2 billion in 2022 and €1.2 billion in 2023.
- In 2015, 20% or €1 billion will be made available. It will be distributed among Member States depending on how the funding has been spent in previous years, also taking into account any unused amounts.
Some Member States, regions, sectors or local communities will be more affected than others. With this in mind, it has been agreed that the allocation method should be based on three main factors:
- the value of fish caught in the UK exclusive economic zone
- the importance of trade with the UK
- the population of maritime border regions with the UK
A total of €600 million will be allocated on the basis of the factor linked to fishing, €4.150 billion based on trade, and €250 million under the factor linked to maritime border regions.
You can read more information here https://ec.europa.eu/regional_policy/en/funding/brexit-adjustment-reserve/
In case there is any news on this subject, we will keep you informed.