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EU Financing / Budgetary Affairs, PUBLICATIONS, Structural and Cohesion Policies

Brexit adjustment reserve [EU Legislation in Progress]

Written by Christiaan van Lierop (1st edition),

© ktsdesign / Adobe Stock
© ktsdesign / Adobe Stock

As part of the preparations for the United Kingdom’s withdrawal from the European Union, the European Council agreed in July 2020 to create a Brexit adjustment reserve within the special instruments outside the budget ceilings of the European Union’s multiannual financial framework, with a budget of €5 billion to counter unforeseen and adverse consequences in Member States and sectors that are most affected.

The European Commission adopted a proposal for a regulation on the Brexit adjustment reserve on 25 December 2020. Under the proposal, the reserve will support public expenditure incurred by Member States from 1 July 2020 to 31 December 2022 for eligible measures, which include support for affected sectors, training, or new border facilities. Funding will be available for all Member States, distributed in two allocation tranches, with 80 % of the resources due to be allocated to Member States in the form of pre-financing, to be disbursed in 2021. Each country’s pre-financing allocation is calculated based on the importance of its trade with the United Kingdom (UK) and, where applicable, its dependence on fisheries in UK waters. All Member States will have to submit an application for funding by 30 September 2023, and those whose eligible expenditure exceeds both the pre-financing amount and 0.06 % of their national gross domestic product will be eligible for an additional contribution, to be paid in 2024.


Proposal for a regulation of the European Parliament and of the Council establishing the Brexit adjustment reserve
Committee responsible: Regional Development (REGI) COM(2020) 854 final 25.12.2020

Pascal Arimont (EPP, Belgium)

2020/0380 (COD)
Shadow rapporteurs: Tsvetelina Penkova (S&D, Bulgaria) Irène Tolleret (Renew, France) François Alfonsi (Greens/EFA, France) Raffaele Fitto (ECR, italy) Martina Michels (The Left, Germany) Ordinary legislative procedure (COD) (Parliament and Council on equal footing – formerly ‘co-decision’)
Next steps expected: Adoption of Committee report
EU Legislation in progress timeline



  1. Pingback: Brexit adjustment reserve [EU Legislation in Progress] | - May 20, 2021

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