On Wednesday 15 September, the European Parliament approved the interinstitutional agreement reached at the beginning of the summer on the Brexit adjustment reserve. The agreement excludes the financial sector from the scope of the reserve. As a result, more funds will be devoted to the fisheries sector and mechanisms to support SMEs and local communities have been introduced, all of it in line with the CoR opinion. The Brexit adjustment reserve is to enter into force in, once adopted by the EU Council.
THE EUROPEAN COMMITTEE OF THE REGIONS
• calls for local and regional authorities to be placed at the heart of the establishment of this new financial instrument. The CoR recommends introducing criteria that take account of the regional intensity of the impact, and ensure a fair distribution of the resources based on the size of the economic impact on each region. This involvement on the part of local and regional authorities will help to target needs and implement the BAR effectively;
• calls for the additional amounts made available in the second stage in accordance with Article 11 to be increased by EUR 1 billion in order to better respond to medium-term needs;
• highlights the exposure of the fisheries and seafood sector, for which there will be a transition period of five and a half years. In addition to the new constraints common to all European sectors, the fisheries sector is facing a direct threat to an entire segment of its activities. This situation requires an impact assessment that reflects regional realities as closely as possible, without national indexation;
• finds it regrettable that the Commission's proposal does not reflect the partnership principle applicable to cohesion policy, as it does not provide any guarantees concerning the role of local and regional authorities in governance;
• highlights the exposure of regions due to loss of trading opportunities with the UK and the fact that the TCA does not fully meet the FTA scenario. This impacts a wide range of sectors and has a cross value-chain effect, for example in tourism, hospitality and agri-food, translating to job losses on the ground.