Commission Seeks To Grow Brexit Adjustment Reserve EUR4.24bn

The European Commission is proposing a EUR4.24bn increase to the Brexit Adjustment Reserve, the pot of cash intended to support regions and sectors across the EU impacted by the increased red tape or lack of demand generated by the UK's exit from the single market and customs union.

• This would equate to nearly doubling the reserve, which was initially set at EUR5bn.
• The Commission has tweeted "The Brexit Adjustment Reserve will come in support to those most impacted by Brexit. We have proposed a EUR4.24 billion increase of the EU's 2021 budget to support EU countries in addressing the immediate effects of Brexit."
• Given the difficulty in agreeing the MFF and COVID-19 Recovery and Resilience fund last year it is unclear if member states will be willing to countenance this increase. On one hand the amount is small compared to the amounts negotiated last year. On the other, some countries (notably the 'frugal four') were taken to their limits by the MFF talks and may not be willing to agree to any more EU contributions beyond that already committed.