Brussels proposes to amend OE2021 to assist Member States in adapting to Brexit

Jessica Sousa 22 January 2021, 14:51

This adjustment will ensure the availability of sufficient resources this year to help the 27 countries in the European bloc to deal with the immediate effects of Brexit.

Following the proposal for a Brexit adjustment reserve, presented by the Commission on 25 December, the Commission today proposed an increase of € 4,24 billion (€ 4 billion at 2018 prices) of the European Union budget (EU) for 2021.

According to the statement released on Friday, this adjustment will guarantee the availability of sufficient resources this year to help the countries of the European bloc to face the immediate effects of Brexit.

After all, the total amount of the Brexit adjustment reserve is five billion euros at 2018 prices, that is, 5,37 billion euros at current prices for the Multiannual Financial Framework 2021-2027, which would raise the budget to € 168,5 billion in commitment appropriations and € 170,3 billion in payment appropriations.

Commenting on the decision, Commissioner Johannes Hahn declared this budget "has always been and continues to be an instrument to honor political commitments" in the European bloc.

“The Brexit adjustment reserve is yet another example of European solidarity”, he guaranteed, adding that “the Commission will now work with the European Parliament and the Council to ensure that the funds are made available to companies, regions and local communities. as soon as possible ”.

In turn, Elisa Ferreira, Commissioner for Cohesion and Reforms, added that “the Brexit adjustment reserve will support those most affected by Brexit” and that “it will be crucial to face the consequences”.

The statement added that the Brexit adjustment reserve would be readily available and flexible, covering expenses aimed at addressing the adverse consequences of Brexit in all Member States over a period of 30 months. Most funds will be allocated through pre-financing as early as 2021, calculated based on the expected impact of the end of the transition period on the economy of each Member State, taking into account the relative degree of economic integration with the Kingdom Kingdom, and includes trade in goods and services and the negative implications for the EU fisheries sector.

The remaining € 2018 billion (at 2024 prices) will be paid in XNUMX, after the Member States have notified the Commission of the actual expenses incurred, which will make it possible to respond to unforeseen events and ensure that support from the adjustment reserve to Brexit focuses on the Member States and the sectors most affected by the exit.

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