Member States’ ambassadors to the EU opted to allocate the full €5 billion (in 2018 prices) of the Brexit adjustment reserve ahead of the implementation and disbursement of the fund, when voting on the EU Council’s position on the Brexit adjustment reserve at an ad hoc meeting of the Committee of Permanent Representatives II (Coreper II) on Thursday 29 April.
As announced (see EUROPE 12705/10), the Member States have thus changed the distribution key for the funds by abolishing the two-tranche approach. As a result each Member State’s share is determined from the outset by three main factors: the value of fish caught in the UK’s exclusive economic zone, the size of trade with the UK and a factor related to the population of the maritime border regions with the UK.
€600 million will be allocated on the fisheries factor, €4.150 billion on the trade factor and €250 million on the maritime border regions factor.
€4 billion, or 80% of the reserve, will be paid as pre-financing in three tranches in 2021, 2022 and 2023. The remaining billion will be made available in 2025 and its distribution will depend on how Member States have spent the funds in previous years, also taking into account unused amounts, based on a report from the European Commission.
It now remains for the European Parliament to decide on its position. On the parliamentary side, the question of the allocation method is also discussed (see EUROPE 12679/10). The aim is still to reach an agreement under the Portuguese Presidency of the EU Council.
EUROPE will report in more detail on the content of the agreement in its next edition.
To consult the EU Council’s position: https://bit.ly/3aRH8P8 (Original version in French by Pascal Hansens)