EU approves over €920m for Ireland under Brexit fund

Ireland to be largest beneficiary of €5.4bn emergency fund as deemed to be hardest hit

The Department of Public Expenditure said the fund would be used to help counter the adverse economic and social consequences of Brexit.

The Department of Public Expenditure said the fund would be used to help counter the adverse economic and social consequences of Brexit.

 

The European Commission has approved a €920.4 million subsidy to Ireland as part of the Brexit Adjustment Reserve fund, which was set up to ameliorate the economic impact of the UK’s exit from the EU.

Ireland is to be the largest beneficiary of the €5.4 billion emergency fund as it is deemed to have been the hardest hit by the disruption to trade from the new arrangements.

It also the first member state to receive funding under the initiative.

It will receive €361.5 million in 2021, €276.7 million in 2022 and €282 million in 2023 with the first instalment disbursed by the end of the current year, the commission said.

In total, Ireland will receive €1.16 billion from the fund. The balance of Ireland’s allocation, estimated to be €244 million, will be paid in 2025 once expenditure incurred between January 1st, 2020, and December 31st, 2023, has been accounted for, the Department of Public Expenditure and Reform confirmed.

The department said the fund would be used to help counter the adverse economic and social consequences of Brexit in areas such as enterprise supports, supports for the fisheries and agri-food sectors, reskilling and retraining and checks and controls at our ports and airports.

Living standards

European commissioner for cohesion and reforms Elisa Ferreira said: “Brexit has had a negative impact on many people’s lives. Within the EU, it is the people in Ireland who feel it the most. The EU’s Brexit Adjustment Reserve stands for solidarity with those most affected. In moving forward, we don’t want to leave anyone behind. The funding that Ireland will receive will contribute to improve living standards, support economic growth in the country and mitigate the negative impacts in local communities.”

The commission said it expected to adopt Brexit Adjustment Reserve decisions for the other member states in the coming weeks; 20 per cent, or €1 billion, will be made available in 2025. It will be shared among member states depending on how the funding has been spent in the previous years and also taking into account any unused amounts.

Business Today

Get the latest business news and commentarySIGN UP HERE