THE Minister for Public Expenditure and Reform Michael McGrath TD, has briefed the Government on the funding Ireland will receive under the EU’s €5 billion Brexit Adjustment Reserve (BAR).
The aim of the reserve is to provide financial support to the most affected member states and sectors to deal with the adverse consequences of Brexit.
Minister McGrath said: “Ireland will receive just over €1 billion of Brexit funding, the biggest single allocation for any member state, representing just over 20% of the total fund. As the member state most impacted by Brexit, it is appropriate that we would be the largest beneficiary.
“Six months since the end of the Brexit transition period, we are seeing the impact that Brexit is having on trade and on particular sectors such as fisheries. With the support and solidarity of the Eurpoean Union, the Brexit Adjustment Reserve will allow us to put in place measures to deal with the consequences of Brexit into the future.”
Commenting on developments, Minister Donohoe said: “It is very welcome that significant progress is being made, both at EU level and domestically, on arrangements for the Brexit Adjustment Reserve. As Ireland is receiving the largest allocation across all Member States, this funding will be an important opportunity to provide necessary and impactful support to mitigate the adverse impact of Brexit.
“Over recent years, significant funding has been allocated to Brexit measures and supports through the annual estimates and budgetary process. Taking this approach for the Brexit Adjustment Reserve will also ensure simplicity and coherence in the approach to disbursing funds.”
Following political agreement in June between the Council of Ministers and the European Parliament, the BAR Regulation is expected to be formally adopted in September.
Mnister McGrath briefed the Government on developments at an EU level as well as the measures to be put in place, led by the Department of Public Expenditure & Reform, to access funding.
Ireland has already spent a considerable amount on preparing for Brexit, with successive budgets since the UK referendum providing significant supports for business and the agri-food sectors, as well as the infrastructure required at the port and airport to maintain the flow of east west trade.
Possible areas for support under the Brexit Adjustment Reserve include enterprise supports; supports for the agri-food sector; fisheries; reskilling and retraining; and infrastructure for the ports and airport.