The bloc’s two largest economies will trouser £780 million between them this year to help adjust to the impact of the new trading relationship with Britain. Only Ireland, arguably the state hardest-hit by Brexit, is set to receive more – £935 million – than the two wealthy capitals. The European Council unveiled its Brexit Adjustment Reserve to help EU countries adjust to the new realities of the bloc’s relationship with Britain in the coming years.
Around £3.7 billion will be dished out to states this year with a further £978 million to be distributed in 2022.
The fund is expected to be mainly spent on propping up the bloc’s fishing industry, which has lost a quarter of its catch in British coastal waters, and the adaptation to new customs controls.
Elisa Ferreira, European commissioner for cohesion and reforms, said: “The €5 billion Brexit Adjustment will support countries, regions, sectors most impacted.
“We kept united during negotiations, we stay united in days after.”Insurance Loans Mortgage Attorney Credit Lawyer
France and Germany set to pocket huge slice of EU's Brexit Adjustment Reserve (Image: GETTY)
German Chancellor Angela Merkel and Commission President Ursula von der Leyen (Image: GETTY)
The European Council and Parliament still need to sign off on the spending plans.
Irish foreign minister Simon Coveney praised eurocrats for ensuring Dublin is handed the largest sum from the fund.
He said: “I’m pleased to announce that a proposal has been made on the Brexit Adjustment Reserve. The BAR is valued at €5.4 billion.
“Ireland’s initial proposed allocation for 2021 is €1.051 billion or 25 percent of the fund.