Commission proposes to amend the EU’s 2021 budget to accommodate the Brexit Adjustment Reserve

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22/01/2021

Following the proposal for a Brexit Adjustment Reserve the Commission put forward on 25 December, the Commission has today proposed a €4.24 billion increase (equal to €4 billion in 2018 prices) of the EU’s 2021 budget. This will ensure sufficient resources are available this year to support EU countries in addressing the immediate effects of Brexit.

The total amount for the Brexit Adjustment Reserve is €5 billion in 2018 prices, or €5.37 billion in current prices for the MFF 2021-27. This would bring the budget to €168.5 billion in commitments and €170.3 billion in payments.

Commenting on the decision, Commissioner Hahn said: “The EU budget has always been and continues to be a tool to deliver on EU’s political commitments. The Brexit Adjustment Reserve is yet another example of European solidarity. The Commission will now work with the European Parliament and the Council to ensure that money becomes available to businesses and companies, regions and local communities as soon as possible.”

Commissioner for Cohesion and Reforms, Elisa Ferreira, added: “Our motto in Cohesion policy is to leave no one behind. The Brexit Adjustment Reserve will come in support to those most impacted by Brexit. European unity was key throughout the negotiations and European solidarity will be crucial to deal with the outcome.”

The Brexit Adjustment Reserve will be rapidly available and flexible, and will cover expenditure to counter adverse consequences of Brexit in all Member States over a period of 30 months. The vast majority will be allocated through pre-financing already in 2021, calculated on the basis of the expected impact of the end of the transition period on each Member State's economy, taking into account the relative degree of economic integration with the UK. This includes trade in goods and services, and the negative implications on the EU fisheries sector. An initial breakdown per Member State is available online.

The remaining €1 billion in 2018 prices will be paid in 2024, after the Member States have notified the Commission about the actual expenditures incurred. This will allow to respond to unforeseen events, and ensure that the support from the Brexit Adjustment Reserve is concentrated on the Members States and sectors most affected by the withdrawal.

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