What is the Brexit Adjustment Reserve?

The Brexit Adjustment Reserve was created to provide support to counteract the negative consequences of Brexit. All Member States are negatively affected by Brexit, but in different ways. Some Member States, regions, sectors, or local communities are more impacted by the departure of the UK than others. The Brexit Adjustment Reserve Fund (BAR) of €5.4 billion has been put in place to support all Member States while ensuring a strong concentration on those most affected.

The BAR differs from other EU funds in a number of ways.

To assist the Member States to swiftly implement measures under the BAR, the financial contribution from the reserve to Member States was pre financed. Funding was provided in three instalments across 2021, 2022 and 2023.

The BAR has only one deadline for the submission of the entire claim, end of September 2024.

The BAR Fund was created in October 2021, however, expenditure from January 2020 to December 2023 is eligible for inclusion in the claim.

The BAR supports measures specifically set up in relation to the withdrawal of the UK from the Union. They can include the following:

• support to economic sectors, business and local communities, and organisations, including small-scale coastal fisheries,  dependent on fishing activities in the UK waters;
• support to job creationand protection, including through short-time work schemes, re-skilling and training;
• measures aimed at the re-integration of Union citizensas well as persons having the right to reside on the territory of the Union who left the United Kingdom, as a result of the withdrawal of the United Kingdom from the Union
• ensuring the functioning of the border, customs, sanitary and phytosanitary and security controls, fisheries control, certification, and authorisation regimes
• measures for communication, information, and awareness-raising of citizens and businesses about changes to their rights and obligations stemming from the withdrawal of the United Kingdom from the Union.

What does it mean for Ireland?

Ireland is the biggest beneficiary of the Brexit Adjustment Reserve with a total allocation of €802 million received in pre-financing. This funding will help Ireland’s economy in mitigating the impact of Brexit, through support to regions and affected economic sectors.

A portion of the BAR allocation has been earmarked to support local and regional coastal communities, including the fisheries sector, in particular the small-scale coastal fisheries dependent on fishing activities in UK waters or waters where opportunities for Union fleets have been reduced as a result of Brexit.

While the exact composition of Ireland’s BAR claim will not be finalised until the claim is submitted in September 2024, the project expenditure related to the fisheries sector planned for inclusion in the BAR claim far exceeds the minimum requirement set out in the regulation.

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