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The government supports the Commission's proposal to create a Brexit adjustment reserve

The government supports the Commission’s proposal to create a Brexit adjustment reserve

The government supports the European Commission’s proposal regarding the Brexit Amendment Reserve. The Brexit Adjustment Reserve provides support to counteract negative outcomes, particularly in member states, territories and industries that have been hit hard by the UK’s exit from the European Union.

The aim is to minimize the negative consequences of Brexit on the economic, social and territorial cohesion of the EU. The government emphasizes the exceptional and temporary nature of the reserve in its letter to the Swedish Parliament on 4 February.

The aid mainly targets member states whose economies have been hard hit by Brexit

As part of the conclusions regarding the long-term budget, the European Council approved in June 2020 the Brexit Amendment Reserve, which totals €5 billion at 2018 prices.

Support from the Brexit settlement reserve is directed primarily to the member states whose economies are suffering the most. In addition to the volume and importance of trade with the UK, negative consequences for the fisheries sector are taken into account separately when allocating funds. The credits can be used for public expenditures incurred in member states due to Brexit for a period ending at the end of 2022.

According to the redistribution mechanism proposed by the Commission, most of the reserve will be paid in advance in 2020 and the remaining part in 2024. The assistance paid in advance to Finland is estimated at 13.6 million euros.

The regulation is due to enter into force in June 2021.

The government later decided on the national distribution of the subsidy.

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more information:

Petri Habalinen, Consulting Officer, Ministry of Labor and Economy, tel. +358 29506 4922
Elisa Hajleh, Specialist, Ministry of Labor and Economy, tel. +358 29506 4949