EU companies that have been affected by Brexit will receive a new round of funding worth €2 billion over the next year, the European Commission has announced.
On Monday 14 March, the Commission approved the disbursement of more than €2 billion under the Brexit Adjustment Reserve to 12 Member States. This decision will make available a total of 819.2 million euros by the end of March 2022 and the rest by April 2023.
France and the Netherlands, which will receive respectively €174m and €210m in 2022 and €178m and €215m in 2023, will be the main beneficiaries of the next installment of payments from the fund set up in 2020 to help businesses and communities to cope with rising trade costs and loss of income resulting from the UK’s exit from the single market last year.
The €5.4 billion fund covers the four-year period between January 1, 2020 and December 31, 2023. Ireland, which was expected to take the biggest economic hit from the UK’s exit from the EU , received around €1 billion from the fund, followed by the Netherlands. which should receive 757 million euros, Germany 455 million euros and France 420 million euros.
Ireland and Italy were the first EU countries to receive cash from the Brexit Adjustment Reserve in December 2021, receiving €920 million and €116 million respectively. By the end of March 2022, 14 Member States will have received their first installments of their pre-financing, according to the Commission.
“It is up to the Member States to make the best use of the funds available to help regions, local authorities, citizens and small and medium-sized enterprises to diversify their activities, retain jobs and re-skill the workforce if necessary,” said the European Commissioner for Cohesion. Elisa Ferreira.
However, Irish trade officials told lawmakers in Dublin last week that the country had been less severely affected than expected in the first year of life under the new EU-UK trade and cooperation agreement. United, although they warned that businesses still face uncertainty this year due to the long-running negotiations over the implementation of the Northern Ireland Protocol and the UK’s introduction this year of customs checks on a series of goods from the EU.
For its part, in its annual report released last Friday, the UK’s cross-party, cross-industry Trade and Business Commission urged EU and UK officials to agree on a series of measures to increase the ease to do business. Among his recommendations, the two sides were to agree a comprehensive veterinary agreement between the EU and the UK to significantly reduce the burdens on many export and import businesses in the food and drink industry. , and more flexible visa rules for seasonal workers, service industries and the creative sector.
[Edited by Nathalie Weatherald]