EU have drawn attention to the risks of the post-brexit adaptation reserve

In its opinion on Monday, the European Court of Auditors (ECA) expressed some concerns about the recent proposal for a post-brexit adaptation reserve. It is a € 5 billion fund that is seen as an instrument of solidarity and is designed to support those EU Member States, regions and sectors that are most affected by the UK's withdrawal from the EU. According to European auditors, this tool gives Member States flexibility, but the very concept of the reserve creates a number of uncertainties and risks. The European Commission (EC) has proposed that 80% of the fund, or € 4 billion, be provided to Member States in the form of pre-financing. EU members would be allocated their share of pre-financing on the basis of the estimated impact on their economies, taking into account two factors: reciprocal trade with Britain and fishing in British territorial waters. Applying this method, Ireland would become the main beneficiary of pre-financing with almost a quarter of the resources (€ 991 million), followed by the Netherlands (714 million), Germany (429 million), France (396 million) and Belgium (305 million). "The Post-brexit Adaptation Reserve is an important funding initiative to help mitigate the negative impact of Brexit on EU Member States' economies. However, we think that the flexibility it provides should not create uncertainty for Member States, "said Tony Murphy, EDA member responsible for this opinion.