Dáil Éireann Debate, Thursday - 25 February 2021
64. Deputy Bernard J. Durkan asked the Minister for Finance if Ireland’s peripheral geographic location is likely to be borne in mind at European level when consideration is being given to assistance that might become available for countries most severely hit by the negative impact of Brexit; and if he will make a statement on the matter. [10881/21]
Amharc ar fhreagraAs the Deputy may be aware, in July 2020, as part of the 2021-2027 Multi-annual Financial Framework negotiations, leaders agreed on a €5 billion Brexit Adjustment Reserve (BAR) to counter unforeseen and adverse consequences in Member States and sectors that are worst affected by the UK’s withdrawal from the EU. Since July 2020, Ireland has taken every opportunity to make its position on the BAR known to the European Commission and to demonstrate the impact Brexit has on us, as the most affected Member State.
In December 2020, the European Commission published its detailed proposal for the BAR, including an allocation key, setting out how the instrument would work and how much should be allocated to each Member State. Under the Commission’s proposal, €4 billion of the total €5 billion instrument will be disbursed in 2021 using an allocation method based on the importance of trade in goods and services with the UK and the importance of fisheries in the UK waters. Under the initial €4 billion tranche of funds, Ireland is set to receive approximately €1 billion (€991 million in 2018 prices, or €1052 million when adjusted for inflation). This proposed allocation is significantly higher than any other Member State. Importantly, the instrument takes into account the high level of trade that Ireland has with the UK, as a result of our close geographical location to the UK. Other Member States geographically and economically close to the UK also see this relationship reflected in their proposed allocations.
The Commission's proposal for the BAR is currently being negotiated at Council level by the Member States and then with the European Parliament. Therefore, the above-described proposal might not be exactly reflected in the final agreement. My Department, along with the Department of Public Expenditure and Reform, Department of Foreign Affairs and Department of the Taoiseach will continue to work hard to ensure that the final BAR outcome reflects the fact that Brexit has a greater impact on Ireland that on any other Member State.
