Although they welcomed the European Commission’s proposal on the Brexit Adjustment Reserve, the EU Member States’ national delegations raised a number of questions on the subject during a meeting of the Working Party on Structural Measures on Tuesday 26 January, particularly with regard to the financing method, retroactivity and the state aid regime.
For example, several Member States raised the issue of the 80% pre-financing rate, which is particularly high compared to the rates applied in the other cohesion policy funds or in REACT-EU. A significant number of delegations also suggested that project eligibility should be made retroactive to 1 January 2020, instead of 1 July 2020 (see EUROPE 12628/6).
Several Member States stressed the need to be able to finance agriculture and not just fisheries. Some asked whether it was possible to fund just one type of business activity. The Commission is reported to have answered in the affirmative.
There issue of the state aid regime was also mentioned, as well as synergies with the Globalisation Adjustment Fund.
The difficult question of the method for allocating funds to Member States will be addressed during February, but, generally speaking, all of the delegations expressed a wish to act quickly in order to have an operational instrument in place by the second half of 2021.
Legislative work has also begun in the European Parliament. Pascal Arimont (EPP, Belgium) has recently been appointed as the rapporteur (see EUROPE 12637/6). (Original version in French by Pascal Hansens)