BETA


2020/0380(COD) Brexit Adjustment Reserve

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead REGI ARIMONT Pascal (icon: EPP EPP) PENKOVA Tsvetelina (icon: S&D S&D), TOLLERET Irène (icon: Renew Renew), ALFONSI François (icon: Verts/ALE Verts/ALE), FITTO Raffaele (icon: ECR ECR), MICHELS Martina (icon: GUE/NGL GUE/NGL)
Committee Opinion PECH BELLAMY François-Xavier (icon: EPP EPP) Grace O'SULLIVAN (icon: Verts/ALE Verts/ALE), Søren GADE (icon: RE RE), Rosanna CONTE (icon: ID ID)
Committee Opinion BUDG HAYER Valérie (icon: Renew Renew) Joachim KUHS (icon: ID ID)
Lead committee dossier:
Legal Basis:
RoP 57, TFEU 175-p3, TFEU 322-p1

Events

2021/11/03
   EC - Commission response to text adopted in plenary
Documents
2021/10/08
   Final act published in Official Journal
2021/10/06
   CSL - Draft final act
Documents
2021/10/06
   CSL - Final act signed
2021/09/28
   EP/CSL - Act adopted by Council after Parliament's 1st reading
2021/09/15
   EP - Results of vote in Parliament
2021/09/15
   EP - Decision by Parliament, 1st reading
Details

The European Parliament adopted by 652 votes to 32, with 11 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council establishing the Brexit adjustment reserve.

The European Parliament's position adopted at first reading under the ordinary legislative procedure amends the Commission's proposal as follows:

Brexit adjustment reserve

The proposed Regulation aims to establish the Brexit adjustment reserve in order to provide support to alleviate the negative consequences of the withdrawal of the United Kingdom from the Union in the different Member States, regions and sectors, in particular those most affected by the withdrawal, and to mitigate the negative impact on economic, social and territorial cohesion. The objectives of the reserve should be pursued in line with the objective of promoting sustainable development.

The reserve should cover in whole or in part measures introduced by Member States between 1 January 2020 and 31 December 2023 .

Geographical coverage and resources for the reserve

All Member States are eligible for support from the reserve.

The maximum resources of the reserve amount to EUR 5 470 435 000 in current prices. They will be provisionally allocated, both in commitment and payment appropriations, as follows:

- a pre-financing amount of EUR 4 321 749 000 in current prices shall be made available and paid in three instalments of EUR 1 697 933 000 in 2021, EUR 1 298 919 000 in 2022 and EUR 1 324 897 000 in 2023;

- a remaining provisionally allocated amount of EUR 1 148 686 000 in current prices shall be made available in 2025.

Of the financial contribution to the reserve for each Member State, 2.5% is paid for technical assistance for the management, monitoring, information, communication, control and audit of the reserve, including at regional and local level, as appropriate.

Member States whose provisional allocation from the resources of the Reserve includes an amount exceeding EUR 10 million determined on the basis of the factor linked to fish caught in the United Kingdom’s exclusive economic zone should spend at least 50 % of that amount or 7 % of their provisionally allocated amount, whichever is lower, to support local and regional coastal communities, including the fisheries sector, in particular the small-scale coastal fisheries sector dependent on fishing activities.

Eligibility

The financial contribution should only support measures specifically implemented by Member States, including at regional and local level. Eligible measures should include:

- support to private and public businesses, in particular SMEs , the self-employed, local communities and organisations adversely affected by the withdrawal of the United Kingdom from the Union;

- support to the economic sectors most adversely affected by the withdrawal of the United Kingdom from the Union;

- support to businesses, regional and local communities and organisations , including small-scale coastal fisheries, dependent on fishing activities in United Kingdom waters, in waters of territories with special status or in waters covered by fisheries agreements with coastal states where fishing opportunities for Union fleets have been reduced as a result of the United Kingdom’s withdrawal from the Union;

- support for job creation and protection, including green jobs, short-time work schemes, re-skilling and training in sectors most adversely affected;

- ensuring the functioning of border, customs , sanitary and phytosanitary, security and fisheries controls, as well as the collection of indirect taxation, including additional personnel and their training, and infrastructure;

- the reintegration of Union citizens as well as persons having the right to reside in the EU who left the United Kingdom, as a result Brexit.

Support measures in the fisheries sector should contribute to the sustainable management of fish stocks and seek to support those fishermen most affected by Brexit, including small-scale coastal fishermen.

Allocation

The allocation method will be based on three main factors : (1) the value of the fish caught in the UK exclusive economic zone; (2) the share of trade with the UK and (3) the population of the maritime border regions with the UK.

The factor linked to fish caught in the United Kingdom’s exclusive economic zone is used to allocate EUR 656 452 200. The factor linked to trade with the United Kingdom is used to allocate EUR 4 540 461 050. The factor linked to maritime border regions with the United Kingdom is used to allocate EUR 273 521 750.

Management, control and monitoring

Member States should establish a management and control system for the reserve. Each Member State should designate a body or, where the constitutional framework of the Member State so requires, several bodies responsible for the management of the reserve and an independent audit body and notify the Commission of the identity of the designated body or bodies.

To enhance the protection of the EU budget, the Commission should make available an integrated and interoperable information and monitoring system, including a single data-mining and risk-scoring tool to access and analyse the relevant data, and should encourage its use with a view to a generalised application by Member States.

With a view to alleviating the negative impact on businesses and economic sectors, and to avoid administrative bottlenecks, Member States and regions should target their information campaigns to raise awareness of the EU contribution from the Reserve.

Documents
2021/09/14
   EP - Debate in Parliament
2021/07/12
   EP - Approval in committee of the text agreed at 1st reading interinstitutional negotiations
2021/06/30
   CSL - Coreper letter confirming interinstitutional agreement
2021/06/30
   EP - Text agreed during interinstitutional negotiations
Documents
2021/06/09
   EP - Committee decision to enter into interinstitutional negotiations confirmed by plenary (Rule 71)
2021/06/07
   EP - Committee decision to enter into interinstitutional negotiations announced in plenary (Rule 71)
2021/05/31
   EP - Committee report tabled for plenary, 1st reading
Details

The Committee on Regional Development adopted the report by Pascal ARIMONT (EPP, BE) on the proposal for a regulation of the European Parliament and of the Council establishing the Brexit Adjustment Reserve.

The committee recommended that the European Parliament's position adopted at first reading under the ordinary legislative procedure be amended as follows:

Objective of the Reserve

Members specified that the Brexit adjustment reserve should provide support to counter the adverse economic, environmental, social and territorial consequences of the withdrawal of the United Kingdom from the Union in Member States, including their regions and local communities, as well as economic sectors, in particular those that are most adversely affected by that withdrawal, and to mitigate the related negative impact on the economic, social and territorial cohesion.

The eligibility period would cover investments made from 1 July 2019 to 31 December 2023 .

Resources for the reserve

The maximum resources for the reserve will amount to EUR 5 billion at 2018 prices.

Members proposed that a pre-financing amount of EUR 4 billion be made available and paid in two instalments, namely EUR 2 billion in 2021 and EUR 2 billion in 2022 .

An additional EUR 1 billion would be made available in 2025 on the basis of expenditure reported to the European Commission, taking into account the pre-financing.

Each Member State could use up to 2.5% of its allocation from the reserve for technical assistance to help local, regional and national authorities manage, monitor and control the implementation of the measures taken.

Eligibility

According to Members, the financial contribution from the reserve should support public expenditure directly related to the following measures:

- measures to support public and private enterprises, in particular SMEs , self-employed people and local communities and organisations hard hit by the withdrawal, in order to overcome the administrative burden and increased operational costs;

- measures to support regional and local organisations and communities, in particular the artisanal fishing sector, which depend on fishing activities in UK waters, in the waters of its special status territories and in waters covered by fisheries agreements with coastal states where fishing opportunities for EU fleets have been reduced as a result of Brexit;

- measures to: (i) support the job creation and protection , including green jobs, short-time working, reskilling and training programmes in hard-hit sectors; (ii) facilitate the reintegration of EU nationals who have left the UK as a result of its withdrawal;

- measures to mitigate the disruption caused by the UK's withdrawal for local and regional cross-border cooperation and exchange programmes.

Design of support measures

When designing fisheries support measures, Member States should: (i) take into account the objectives of the Common Fisheries Policy and ensure that such measures contribute to the sustainable management of fish stocks; (ii) endeavour to support those fishermen most affected by the UK's withdrawal from the Union.

Small-scale fisheries and local communities dependent on fishing activities in UK waters should receive at least 7% of the national allocation (for the countries concerned).

Member States should establish a multi-level dialogue with local and regional authorities and communities in the most affected regions and sectors, social partners and civil society, with a view to defining and implementing measures to be supported by the reserve, as well as a monitoring mechanism.

The measures should (i) be in line with the principles set out in the European Charter of Social Rights; (ii) take into account the European Green Deal; (iii) respect the principle of 'no significant harm'; and (iv) contribute to the Union's environmental objectives in line with the Paris Agreement and the UN Sustainable Development Goals.

In addition, Member States and the European Commission should look for synergies with the support provided by the European Structural Funds and ensure that the reserve does not overlap with them.

Members also called for those in the financial sector , including banking, who have benefited from the UK's withdrawal from the EU, to be excluded from support.

Implementation

Member States benefiting from the reserve should provide all necessary public support evidence to maintain and create quality jobs where employment was negatively affected or lost due to the withdrawal of the UK from the EU.

The Reserve should be implemented in accordance with the principle of sound financial management, including the effective prevention and prosecution of tax fraud, tax evasion, tax avoidance and aggressive tax planning.

Documents
2021/05/28
   EP - Committee opinion
Documents
2021/05/25
   EP - Vote in committee, 1st reading
2021/05/25
   EP - Committee decision to open interinstitutional negotiations with report adopted in committee
2021/05/11
   EP - Committee opinion
Documents
2021/03/31
   EP - Amendments tabled in committee
Documents
2021/03/26
   EP - Amendments tabled in committee
Documents
2021/03/19
   CofR - Committee of the Regions: opinion
Documents
2021/03/11
   EP - Referral to associated committees announced in Parliament
2021/03/10
   PT_PARLIAMENT - Contribution
Documents
2021/03/10
   ES_PARLIAMENT - Contribution
Documents
2021/03/09
   DE_BUNDESRAT - Contribution
Documents
2021/03/03
   EP - BELLAMY François-Xavier (EPP) appointed as rapporteur in PECH
2021/03/02
   EP - Committee draft report
Documents
2021/02/25
   CofA - Court of Auditors: opinion, report
2021/01/29
   EP - HAYER Valérie (Renew) appointed as rapporteur in BUDG
2021/01/18
   EP - Committee referral announced in Parliament, 1st reading
2021/01/14
   EP - ARIMONT Pascal (EPP) appointed as rapporteur in REGI
2020/12/25
   EC - Legislative proposal published
Details

PURPOSE: to establish the Brexit adjustment reserve to strengthen economic, social and territorial cohesion and show tangible solidarity with Member States, regions and sectors most affected by the withdrawal of the United Kingdom from the EU.

PROPOSED ACT: Regulation of the European Parliament and of the Council.

ROLE OF THE EUROPEAN PARLIAMENT: the European Parliament decides in accordance with the ordinary legislative procedure and on an equal footing with the Council.

BACKGROUND: the United Kingdom left the European Union on 1 February 2020. Even with the new EU-UK Trade and Cooperation Agreement in place, there will be big changes at the end of the transition period on 1 January 2021. On that date, the UK will leave the EU Single Market and Customs Union, as well as all EU policies and international agreements. It will put an end to the free movement of persons, goods, services and capital with the EU.

The EU and the UK will form two separate markets; two distinct regulatory and legal spaces. This will recreate barriers to trade in goods and services and to cross-border mobility and exchanges that have not existed for decades – in both directions, affecting public administrations, businesses, citizens and stakeholders on both sides. This will have broad and far-reaching consequences for businesses, citizens and public administrations.

The Commission has been working with the Member States and their administrations to help preparations and boost readiness. The European Council conclusions, agreed at its special meeting of 17-21 July 2020, to provide for the establishment of a new special Brexit Adjustment Reserve ‘to counter unforeseen and adverse consequences in Member States and sectors that are worst affected'.

The Reserve would be complementary and ensure synergies with other Union programmes and funding instruments. It will concentrate its resources specifically and exclusively on the direct effect of the specific and unprecedented event of withdrawal of the United Kingdom from the Union, reducing its impact in terms of territorial cohesion.

PURPOSE: the proposed Brexit Adjustment Reserve should provide support to Member States, regions and sectors, in particular those that are worst affected by the adverse consequences of the withdrawal of the UK from the EU. It should cover all Member States. The period of eligibility for direct public expenditure will run from 1 July 2020 to 31 December 2022.

Sector support

The proposed Reserve should support measures specifically set up in relation to the withdrawal of the UK from the Union. They may include the following:

- support to economic sectors, business and local communities, including those dependent on fishing activities in the UK waters;

- support to employment and reintegration in the labour market of citizens returning from the UK, including through short-time work schemes, re-skilling and training;

- ensuring the functioning of border, customs, sanitary and phytosanitary and security controls, fisheries control, certification and authorisation regimes, communication, information and awareness raising for citizens and businesses.

Submission and assessment of applications for financial contribution from the Reserve

To ensure equal treatment of all Member States, there should be one single deadline applicable to all Member States for the submission of applications for a financial contribution from the Reserve. This deadline is the 30 September 2023.

Following the application, the Commission should examine the eligibility and accuracy of the expenditure declared, its link to the end of the transition period and its economic effects, and the measures put in place to avoid double financing as well as the supporting documents. Where the expenditure accepted as eligible exceeds the amount paid in pre-financing and 0.06% of the nominal GNI of 2021, additional amounts from the Reserve may be paid to contribute to the exceeding amounts, within the limits of the financial resources available. The amounts recovered or carried over from the pre-financing may be used for reimbursement of additional expenditure by Member States, provided there is a demand.

Reporting

By 30 June 2027, the Commission should present an implementation report of the Reserve to the European Parliament and the Council.

Budgetary implications

The maximum resources for the implementation of the Reserve should be EUR 5 370 994 000 in current prices, to be financed as a special instrument outside of the EU budget ceilings of the Multiannual Financial Framework. The support should be disbursed in two allocation rounds.

The first, more substantial one (EUR 4 244 832 000) should be activated in 2021 in the form of pre-financing.

The second round (EUR 1 126 162 000) should be allocated and disbursed in 2024 for additional contributions in line with the provisions of the present proposal.

The budget allocated to the Reserve should be implemented under shared management with the Member States, guaranteeing full respect of the principles of sound financial management, transparency and non-discrimination and the absence of conflict of interest.

Lastly, in order to avoid extra financial and administrative burdens on the Member States, Member States could also roll over existing systems already used for the management and control of cohesion policy funding or the European Union Solidarity Fund.

Documents

Activities

Votes

Réserve d’ajustement au Brexit - Brexit Adjustment Reserve - Reserve für die Anpassung an den Brexit - A9-0178/2021 - Pascal Arimont - Accord provisoire - Am 107 #

2021/09/15 Outcome: +: 652, -: 32, 0: 11
DE FR IT PL RO NL PT ES BE HU AT BG CZ EL SE DK IE HR LT SK FI LV SI EE MT CY LU
Total
94
79
74
51
33
29
21
58
20
20
19
17
21
21
21
14
13
12
10
14
13
8
8
7
6
6
6
icon: PPE PPE
177

Hungary PPE

1

Denmark PPE

For (1)

1

Latvia PPE

2

Estonia PPE

For (1)

1

Malta PPE

2
2

Luxembourg PPE

2
icon: S&D S&D
143

Czechia S&D

For (1)

1

Greece S&D

2

Lithuania S&D

2

Latvia S&D

2

Slovenia S&D

2

Estonia S&D

2

Cyprus S&D

2

Luxembourg S&D

For (1)

1
icon: Renew Renew
98

Italy Renew

2

Hungary Renew

2

Austria Renew

For (1)

1
3

Ireland Renew

2

Croatia Renew

For (1)

1

Lithuania Renew

1

Finland Renew

3

Latvia Renew

For (1)

1

Slovenia Renew

2

Estonia Renew

3

Luxembourg Renew

2
icon: Verts/ALE Verts/ALE
70

Poland Verts/ALE

For (1)

1

Netherlands Verts/ALE

3

Portugal Verts/ALE

1

Spain Verts/ALE

3

Belgium Verts/ALE

2

Austria Verts/ALE

3

Czechia Verts/ALE

3

Sweden Verts/ALE

3

Denmark Verts/ALE

2

Ireland Verts/ALE

2

Lithuania Verts/ALE

For (1)

1

Finland Verts/ALE

3

Latvia Verts/ALE

1

Luxembourg Verts/ALE

For (1)

1
icon: ECR ECR
63

Germany ECR

1

Romania ECR

1

Bulgaria ECR

2

Greece ECR

1
3

Croatia ECR

1

Lithuania ECR

1

Slovakia ECR

Against (1)

1

Latvia ECR

2
icon: ID ID
71

Netherlands ID

Against (1)

1
3

Czechia ID

Against (2)

2

Denmark ID

For (1)

1

Finland ID

2

Estonia ID

For (1)

1
icon: The Left The Left
37

Netherlands The Left

For (1)

1

Belgium The Left

For (1)

1

Czechia The Left

1

Sweden The Left

For (1)

1

Denmark The Left

1

Cyprus The Left

2
icon: NI NI
36

Germany NI

2

Netherlands NI

1

Croatia NI

Against (1)

2

Lithuania NI

1

Slovakia NI

Against (1)

2
AmendmentsDossier
668 2020/0380(COD)
2021/03/08 BUDG 205 amendments...
source: 689.553
2021/03/26 REGI 2 amendments...
source: 691.145
2021/03/31 REGI 319 amendments...
source: 691.144
2021/04/19 PECH 142 amendments...
source: 691.333

History

(these mark the time of scraping, not the official date of the change)

docs/0
date
2020-12-25T00:00:00
docs
summary
type
Legislative proposal
body
EC
docs/2
date
2021-03-19T00:00:00
docs
title: CDR0718/2021
type
Committee of the Regions: opinion
body
CofR
docs/2/docs/0/url
https://dmsearch.cor.europa.eu/search/public?k=(documenttype:AC)(documentnumber:0718)(documentyear:2021)(documentlanguage:EN)
docs/3
date
2021-03-19T00:00:00
docs
title: CDR0718/2021
type
Committee of the Regions: opinion
body
CofR
docs/7
date
2021-06-30T00:00:00
docs
title: GEDA/A/(2021)002912
type
Coreper letter confirming interinstitutional agreement
body
CSL
docs/7
date
2021-05-20T00:00:00
docs
title: PE692.938
type
Amendments tabled in committee
body
EP
docs/7/docs/0/url
http://www.europarl.europa.eu/RegData/commissions/regi/lcag/2021/07-06/REGI_LA(2021)002912_EN.pdf
docs/8
date
2021-06-30T00:00:00
docs
url: http://www.europarl.europa.eu/RegData/commissions/regi/inag/2021/07-06/REGI_AG(2021)695149_EN.pdf title: PE695.149
type
Text agreed during interinstitutional negotiations
body
EP
docs/9
date
2021-06-30T00:00:00
docs
title: GEDA/A/(2021)002912
type
Coreper letter confirming interinstitutional agreement
body
CSL
docs/11
date
2021-03-10T00:00:00
docs
url: https://connectfolx.europarl.europa.eu/connefof/app/exp/COM(2020)0854 title: COM(2020)0854
type
Contribution
body
PT_PARLIAMENT
docs/12
date
2021-03-09T00:00:00
docs
url: https://connectfolx.europarl.europa.eu/connefof/app/exp/COM(2020)0854 title: COM(2020)0854
type
Contribution
body
DE_BUNDESRAT
docs/12
date
2021-03-11T00:00:00
docs
url: http://www.connefof.europarl.europa.eu/connefof/app/exp/COM(2020)0854 title: COM(2020)0854
type
Contribution
body
PT_PARLIAMENT
docs/13
date
2021-03-10T00:00:00
docs
url: https://connectfolx.europarl.europa.eu/connefof/app/exp/COM(2020)0854 title: COM(2020)0854
type
Contribution
body
ES_PARLIAMENT
docs/13
date
2021-03-10T00:00:00
docs
url: http://www.connefof.europarl.europa.eu/connefof/app/exp/COM(2020)0854 title: COM(2020)0854
type
Contribution
body
DE_BUNDESRAT
events/0
date
2020-12-25T00:00:00
type
Legislative proposal published
body
EC
docs
summary
events/7
date
2021-07-13T00:00:00
type
Approval in committee of the text agreed at 1st reading interinstitutional negotiations
body
EP
events/8
date
2021-07-12T00:00:00
type
Approval in committee of the text agreed at 1st reading interinstitutional negotiations
body
EP
docs
links
Research document
procedure/dossier_of_the_committee
  • REGI/9/05035
procedure/stage_reached
Old
Awaiting Parliament 2nd reading
New
Procedure completed
docs/12
date
2021-03-11T00:00:00
docs
url: http://www.connefof.europarl.europa.eu/connefof/app/exp/COM(2020)0854 title: COM(2020)0854
type
Contribution
body
ES_CONGRESS