The European Parliament has approved a Brexit Mitigation Fund

On Wednesday, the European Parliament approved by an overwhelming majority a € 5 billion fund to help Member States cope with the economic, social and territorial effects of the UK's exit from the European Union. As the European Parliament's press center informs in a press release, an agreement on the establishment of a special fund was reached in June by negotiators from the parliament and the European Council. It was supported by 652 Members of Parliament, 32 against and 11 abstentions. In 2021, 1.6 billion will be distributed. The remaining € 3.4 billion will follow in two tranches of € 1.2 billion in 2022 and 2023. The last billion is expected to be disbursed in 2025. The allocation of money to each Member State will take into account three factors, namely the importance of trade with the United Kingdom, the importance of fishing in its exclusive economic zone and the number of people living in neighboring maritime areas. In absolute terms, Ireland (approximately EUR 1 billion) will be the largest beneficiaries, followed by the Netherlands (EUR 810 million), France (EUR 670 million), Germany (EUR 590 million) and Belgium (EUR 350 million). Member States that are heavily dependent on fishing will need to devote a certain percentage of their resources to small-scale coastal fishing, as well as local and regional communities dependent on fishing activities. In order to complete the legislative process and distribute financial support, the Brexit Adaptation Fund needs to be formally approved by the EU Council.