Filenews 16 September 2021
Cyprus is high on the list, having received about €47.5 million from the adjustment fund approved by the EP to mitigate the impact of Brexit.
MEPs approved the €5 billion adjustment fund. to address the economic, social and geographical impact of the UK's withdrawal from the EU.
The agreement on the establishment of the special fund, reached by the negotiators of the Parliament and the Council in June, was approved by 652 votes to 32 with 11 abstentions. In 2021, €1.6 billion will be distributed. The remaining €3.4 billion will be followed in tranches of €1.2 billion in 2022 and 2023, followed by €1 billion in 2025 (in 2018 prices).
Which measures could be supported?
Measures eligible for funding may include, inter alia, support to businesses, local communities, job creation or support for EU citizens for reintegration.
MEPs have ensured that expenditure incurred between 1 January 2020 and 31 December 2023 will be covered by the Fund. The Commission's proposal set the eligibility period restrictively, from 1 July 2020 to 31 December 2022.
Allocation of funds
According to the agreement, three factors will be used to calculate the amount each EU country will receive: the size of its trade with the UK, the importance of its fishing in the UK's AOZ and the size of its population living in maritime areas bordering the UK.
On the basis of these criteria, Ireland will be by far the largest beneficiary in absolute terms (around €1 billion), followed by the Netherlands (around €810 million), France (around €670 million), Germany (around €590 million) and Belgium (around €350 million). However, Cyprus is high on the list, especially considering the size of its population and that it falls only under the first criterion, having received about €47.5 million.
Member States that are heavily dependent on fishing should direct a certain proportion of their national distribution to small-scale coastal fishing and to local and regional communities dependent on fishing activities.
Statements
"The EU stands by the businesses, regions and countries most affected by Brexit. Through the adaptation fund, we have managed to organise a rapid European response and provide assistance quickly. Thanks to clear criteria, €5 billion has been set up for this purpose. Euros will be made available where they are needed. We have also ensured that the first part of the aid can already be made available from the end of this year," said EP rapporteur Pascal Arimont (EPP, Belgium).
Next steps
To complete the legislative process and distribute financial support, the Brexit adjustment fund also needs to be formally approved by the Council of the EU.
