Brexit Adjustment Reserve

The European Parliament adopted by 619 votes to 6, with 37 abstentions, a legislative resolution on the proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2021/1755 as regards the amounts allocated to the Member States under the Brexit Adjustment Reserve.

Parliament adopted its position at first reading, taking over the Commission's proposal.

Since 2021, Russia's war against Ukraine, the energy crisis, and rising inflation and interest rates have created new emergencies for the European Union. Faced with dwindling budgetary resources, the 2024-2027 multiannual financial framework has been strengthened to provide the most essential funding to address urgent and shared challenges.

In this context, Regulation (EU, Euratom) 2024/765 reduced the ceiling of the Brexit Adjustment Reserve to allow for the redeployment of resources. It is therefore necessary to reduce the maximum resources of the reserve as provided for in Regulation (EU) 2021/1755.

Consequently, the amount of EUR 584 264 090 which, in accordance with Regulation (EU) 2021/1755 should have been paid in 2025, should not be paid, and should be deducted from the overall reserve envelope.

The proposed amendment to the Brexit Adjustment Reserve (BAR) aims to reduce the resources provisionally allocated to the BAR by EUR 584 264 090, which is then reallocated to other purposes. This reduction is expressed in current prices.

In order to ensure efficient use of resources already disbursed to Member States under the BAR and to avoid compromising the implementation of the Recovery and Resilience Facility (RRF) in Member States, this reduction should not affect resources already disbursed to Member States as pre-financing or resources that Member States have requested to be transferred to the RRF.