Brexit Adjustment Reserve regulation

Subject: Brexit Adjustment Reserve regulation

The Brexit Adjustment Reserve regulation1 came into force in October 2021 with a retroactive eligibility period as from 1 January 2020. The expenditure needs to be incurred and paid by the public authorities by 31 December 2023 and Member States need to report by 30 September 2024 about the measures carried out.

Regulation (EU) 2023/4352 of 27 February 2023 allowed for transfers from the Brexit Adjustment Reserve (BAR) to the REPowerEU chapter of the Recovery and Resilience Facility (RRF).

Given that the Irish Government and associated state agencies are advising applicants to the BAR Processing Capital Support Scheme for the fishing and aquaculture industries that they must finalise applications and drawdown monies by 30 October 2023:

1. Can the Commission clarify if it considers that all BAR funding opportunities should remain open until 31 December 2023?

2. Can funding for such schemes be transferred to RePowerEU and will it consider any extension to the current BAR scheme beyond 31 December 2023?

Submitted: 5.10.2023

1 Regulation (EU) 2021/1755 of 6 October 2021 establishing the Brexit Adjustment Reserve, OJ L 357,

8.10.2021, p. 1.

2 Regulation (EU) 2023/435 of 27 February 2023 amending Regulation (EU) 2021/241 as regards REPowerEU

chapters in recovery and resilience plans and amending Regulations (EU) No 1303/2013, (EU) 2021/1060 and (EU) 2021/1755, and Directive 2003/87/EC, OJ L 63, 28.2.2023, p. 1.

Answer given by Executive Vice-President Dombrovskis on behalf of the European Commission (8 December 2023)

1. In line with the Brexit Adjustment Reserve (BAR) Regulation (3), each Member State must submit to the Commission an application for a financial contribution from the BAR by 30 September 2024, for eligible expenditure made by 31 December 2023. Practical guidance on eligibility of funding under the BAR Regulation was issued by the Commission on 22 May 2023 (4).

2. The REPowerEU Regulation (5) allows for the transfer of funds from the BAR to the Recovery and Resilience Facility (RRF) to finance REPowerEU measures. To execute such a transfer, the concerned measure must be compliant with the requirements stipulated in the regulation. However, the deadline for Member States to notify the Commission of their intention to transfer BAR funds to the RRF was 1 March 2023. A vast majority of Member States used this voluntary option and transferred a total of 38% of the provisional BAR allocation to the Facility. An extension of the eligibility period would require a change to the regulation. There is no intention of the Commission to propose such an amendment.

1 ∙ ⸱ Regulation (EU) 2021/1755 of 6 October 2021 establishing the Brexit Adjustment Reserve, OJ L 357, 8.10.2021, p. 1.

2 ∙ ⸱ Regulation (EU) 2023/435 of 27 February 2023 amending Regulation (EU) 2021/241 as regards REPowerEU chapters in recovery and resilience plans and

amending Regulations (EU) No 1303/2013, (EU) 2021/1060 and (EU) 2021/1755, and Directive 2003/87/EC, OJ L 63, 28.2.2023, p. 1. 3 ∙ ⸱ Regulation (EU) 2021/1755 of 6 October 2021 establishing the Brexit Adjustment Reserve, OJ L 357, 8.10.2021, p. 1. 4 ∙ ⸱ https://ec.europa.eu/regional_policy/funding/brexit-adjustment-reserve_en 5 ∙ ⸱ Regulation (EU) 2023/435 of 27 February 2023 amending Regulation (EU) 2021/241 as regards REPowerEU chapters in recovery and resilience plans and amending Regulations (EU) No 1303/2013, (EU) 2021/1060 and (EU) 2021/1755, and Directive 2003/87/EC, OJ L 63.