As the Deputy will be aware, on 21st July 2020, Heads of State and Government reached agreement on the Post-2020 Multiannual Financial Framework (MFF) and Next Generation EU, totalling €1.82 trillion. Difficult discussions took place over four days, but the Government welcomes this agreement. This is a fair and balanced outcome
and demonstrates that Europe can work collectively to deal with this once-in-a-generation crisis. Council conclusions set out the leaders’ agreement for the European Commission to borrow €750 billion, supporting Member States with €390 billion in grants and €360 billion in loans. Agreement was also reached on a new MFF from 2021 – 2027, totalling €1.074 trillion, which will support rural and regional development, and the transformation of our economies in line with the climate transition, research and development, and digital agendas.
As part of the final agreement reached, leaders also agreed on the setting up of a new special Brexit Adjustment Reserve of €5 billion. This Reserve will help to counter the unforeseen and adverse consequences in Member States and sectors that are worst affected by Brexit. Leaders invited the European Commission to present a proposal on the Brexit Adjustment Reserve by November 2020.
We await publication of the European Commission's proposal including their proposal for allocating the funds. Thus, I am not in a position to provide details on how much Ireland may be able to draw down from the Reserve in 2021 or in the years after or indeed on the way in which funds may be allocated across sectors and measures. However, I can assure the Deputy that I am aware of the importance which this Reserve is likely to have for Ireland. I can also assure the Deputy that the Government will continue to communicate with the European Commission and other Member States the needs arising from our unique situation in relation to Brexit, in order to ensure that Ireland, as the Member State likely to be the hardest hit by Brexit, receives its fair share of the Brexit Adjustment Reserve.