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The Brexit Adjustment Reserve

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  1. What is the Brexit Adjustment Reserve

The Brexit Adjustment Reserve will provide support to Member States, regions and sectors, in particular those that are worst affected by the adverse consequences of the withdrawal of the UK from the Union, mitigating thus its impact on economic, social and territorial cohesion. It will contribute to specific measures set up by the Member States to help businesses and economic sectors, workers, regions and local communities suffering from the impact of the end of transition period.

  1. Why is a Brexit Adjustement Reserve needed?

Even with the new EU-UK Trade and Cooperation Agreement in place, there will be big changes on 1 January 2021. On that date, the UK will leave the EU Single Market and Customs Union, as well as all EU policies and international agreements. It will put an end to the free movement of persons, goods, services and capital with the EU.

The EU and the UK will form two separate markets; two distinct regulatory and legal spaces. This will recreate barriers to trade in goods and services and to cross-border mobility and exchanges that have not existed for decades – in both directions, affecting public administrations, businesses, citizens and stakeholders on both sides.

  1. Will it cover all Member States?

The Reserve will cover all Member States. Its allocation method, architecture and functioning are designed in order to allow the concentration on those that are worst affected.

  1. How much money will it make available?

The maximum amount available will be €5 billion (in 2018/constant prices; EUR 5.37 billion in current prices). It will be set up as a special instrument outside of the EU budget ceilings of the Multiannual Financial Framework 2021-2027.

  1. How will the resources be distributed?

The support will be disbursed in two allocation rounds. The first, more substantial one will be activated in 2021 in the form of pre-financing, whereby an amount per Member State will be determined based on an allocation key taking into account the relative degree of economic integration with the UK, including trade in goods and services. An additional amount will be allocated to reflect the losses that some Member States will suffer from the limitations in accessing the UK waters for fishing activities.

The second payment round will be disbursed in 2024 in the form of additional contribution based on the expenditure incurred and declared to the Commission, taking into account the use of the pre-financing. If this expenditure exceeds both the amount of the pre-financing and 0.06% of the nominal GNI of 2021, the Member States will receive an additional amount from the Reserve.

  1. What types of measures will the Reserve finance and over what period of time?

The Reserve will support measures specifically set up in relation to the withdrawal of the UK from the Union. They can include the following:

  • support to economic sectors, business and local communities, including those dependent on fishing activities in the UK waters;
  • support to employment and reintegration in the labour market of citizens returning from the UK, including through short-time work schemes, re-skilling and training;
  • ensuring the functioning of border, customs, sanitary and phytosanitary and security controls, fisheries control, certification and authorisation regimes, communication,information and awareness raising for citizens and businesses.

The eligibility period for the expenditure starts on 1 July 2020 and will run for 30 months in order to give the possibility and the flexibility to the Member States to design and implement the necessary measures aimed at stemming the immediate impact of the withdrawal.

  1. Will the fisheries sector receive support from the Reserve?

It is clear that the withdrawal of the UK from the EU poses specific risks to the fisheries sector in terms of less favourable access to the UK waters. The proposal reflects this reality in the way the resources of the first disbursement are allocated among Member States. It is up to Member States to design the support measures targeting the sectors and communities most affected.

  1. How will the Commission and the Member States make sure that the resources from the Reserve are spent efficiently and effectively?

The budget allocated to the Reserve will be implemented under shared management with the Member States, guaranteeing full respect of the principles of sound financial management, transparency and non-discrimination and the absence of conflict of interest. The Commission’s proposal sets out clearly the responsibilities for the Member States and a set of requirements for the bodies responsible for the management, control and audit of the financial contribution under the Reserve. In doing so, it strikes the right balance between legality and regularity of expenditure on the one hand and simplification on the other, ensuring that the Brexit Adjustment Reserve can be made available as soon as possible to address the immediate consequences of the withdrawal.

In addition, in order to avoid extra financial and administrative burdens on the Member States, Member States could also roll over existing systems already used for the management and control of cohesion policy funding or the European Union Solidarity Fund.

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EU Politics

Focus on the recovery from the pandemic at the 19th EU Regions Week

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The annual European Week of Regions and Cities has shown how the EU and national and regional governments can support European citizens and their local communities with public policies aimed at investing in a fairer, greener and more digital future for recovery. Under the theme ‘Together for Recovery’, more than 300 sessions, including debates with high-profile officials, regional and local representatives, an inspiring Citizens’ Dialogue, various workshops as well as an Award for outstanding young journalists, celebrated the EU values of cohesion and solidarity.

Taking place in a hybrid format, with sessions both physical and virtual, the 19th EU Regions Week had one main mission: highlighting the role of EU investments in the recovery from the pandemic and in facing common challenges. The event kicked off with a press conference with Apostolos Tzitzikostas, President of the European Committee of the Regions (CoR) and Elisa Ferreira, Commissioner for Cohesion and Reforms, who underlined that “Cohesion Policy was one of the first responders in the emergency phase of the COVID-19 pandemic, driven by the core value of EU solidarity”.

The second annual local and regional barometer was presented by Apostolos Tzitzikostas, followed by a debate with members of the European Committee of the Regions. The report confirmed that the pandemic related measures put at risk regional and local finances, resulting in a 180 billion budget cut for local and regional authorities across Europe. At the same time, 1 in 3 local and regional politicians want regions and cities to become more influential in EU policy-making on health issues.

Unless we measure the state of our regions and cities, we cannot understand the state of our Union” said Apostolos Tzitzikostas, President of the European Committee of the Regions. “Only by taking the pulse of our communities, we can decide how effective the EU has been on the ground, and what the EU needs to do to help its people”.

Further taking stock of the EU cohesion policy response to the coronavirus pandemic as well as informing the general public, various workshops touched upon life before and after the pandemic, including explanations regarding the role of regions and cities for a Green Transition, the Cohesion Policy 2021-2027 and NextGenerationEU, as well as the CRII, CRII+, React-EU support packages for regional and local healthcare services and equipment.

Young journalists were also invited to take part in the EU Regions Week 2021, getting the opportunity to debate with Elisa Ferreira at the Citizens’ Dialogue. In the Youth4Regions programme for aspiring journalists, Irene Barahona Fernandez from Spain and Jack Ryan from Ireland won the 2021 Megalizzi-Niedzielski prize for aspiring journalists.

About the event

The European Week of Regions and Cities (#EURegionsWeek) is the largest EU-wide event on regional development. It is co-organised by the European Commission and the European Committee of the Regions.

In total, more than 12 000 participants and 900 speakers joined the 4-day event either physically or online, showing engagement in all corners of EU society – from our vibrant youth to our high-profile officials, local and regional representatives, academic experts and professional specialists, displaying a common readiness to tackle what the future holds, together.

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EU Politics

EU and Qatar sign landmark aviation agreement

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The European Union and the State of Qatar today signed a comprehensive air transport agreement, upgrading rules and standards for flights between Qatar and the EU. The agreement sets a new global benchmark by committing both sides to fair competition, and by including social and environmental protection. The signing means new opportunities for consumers, airlines and airports in Qatar and the EU.

Qatar is an increasingly important aviation partner for the EU. It was the 15th largest extra-EU market in 2019 with 6.3 million passengers travelling between the EU and Qatar. Ensuring open and fair competition for air services between both is therefore crucial, also for routes between the EU and Asia.

Adina Vălean, Commissioner for mobility and transport, said: “This agreement, the first one between the EU and the Gulf region, is a global benchmark for forward-looking aviation agreements. It is testimony to our shared commitment to economically, socially and environmentally sustainable aviation, based on a modern framework covering fair competition and closer cooperation on social and environmental matters. This agreement will bring new opportunities, more choice and higher standards for passengers, industry and aviation workers.”

Today’s agreement creates a level playing field that is expected to result in new air transport opportunities and economic benefits for both sides:

  • All EU airlines will be able to operate direct flights from any airport in the EU to Qatar and vice versa for Qatari airlines.
  • EU airports in Germany, France, Italy, Belgium and the Netherlands will be subject to a gradual build-up of capacity until 2024. For more details on this, see the Q&A.
  • Strong provisions on open and fair competition will guarantee a level playing field.
  • The parties recognised the importance of social matters, agreed to cooperate on these and to improve their respective social and labour laws and policies as per their international commitments.

The agreement will facilitate people-to-people contacts and expand commercial opportunities and trade. Going beyond traffic rights, the EU-Qatar agreement will provide a single set of rules, high standards and a platform for future cooperation on a wide range of aviation issues.

Background

Qatar is a close aviation partner for the European Union; more than 6 million passengers travelled between the EU and Qatar per year under the existing 26 bilateral air transport agreements with EU Member States prior to the pandemic. While direct flights between most EU Member States and Qatar have already been liberalised by those bilateral agreements, none of them include provisions on fair competition, or social and environmental issues, which the Commission considers essential for a modern aviation agreement.

In 2016, the European Commission obtained authorisation from the Council to negotiate an EU-level aviation agreement with Qatar, which started on 4 March 2019. While the agreement still needs to be ratified by the parties before formally entering into force, it will start being applied from today’s signature.

Similar EU comprehensive air transport agreements have been signed with other partner countries, namely the United States, Canada, the Western Balkans, Morocco, Georgia, Jordan, Moldova, Israel and Ukraine. Further air transport agreements with Armenia and Tunisia are expected to be signed in the coming weeks.

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EU Politics

Sakharov Prize 2021: the finalists

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The 2021 finalists for the European Parliament's Sakharov Prize for Freedom of Thought are Afghan women, Jeanine Áñez and Alexei Navalny

The 2021 finalists for the European Parliament’s Sakharov Prize for Freedom of Thought are Afghan women, Jeanine Áñez and Alexei Navalny.

Meet this year’s finalists of the European Parliament’s Sakharov Prize for Freedom of Thought, who were chosen at a joint meeting of the foreign affairs and development committees on 14 October:

  • Afghan women, represented by 11 human rights activists
  • Jeanine Áñez, Bolivian politician
  • Alexei Navalny, Russian activist and political prisoner


Afghan women

Under the previous Taliban regime, women experienced forced marriage, high maternity mortality, low literacy, forced virginity tests and couldn’t travel without a man. Following the Taliban’s return to power, women are again excluded from government and education and their rights and freedoms are threatened. The women, who are nominated for their brave fight for equality and human rights, are:

  • Shaharzad Akbar – chair of the Afghan Independent Human Rights Commission (AIHRC)
  • Mary Akrami – head of the Afghan Women’s Network
  • Zarifa Ghafari – mayor of Maidan Shar since 2018
  • Palwasha Hassan – activist and the director of Afghan Women Educational Centre (AWEC)
  • Freshta Karim – founder of a mobile library and an advocate for education and learning
  • Sahraa Karimi – first female president of the Afghan state film company
  • Metra Mehran – women empowerment and education advocate and co-founder of the Feminine Perspectives Movement
  • Horia Mosadiq – human and women’s rights activist
  • Sima Samar – human rights advocate, former Minister of Women’s Affairs and former chair of Afghan Independent Human Rights Commission
  • Habiba Sarabi – member of the negotiating team of the Islamic Republic of Afghanistan
  • Anisa Shaheed – political reporter


Jeanine Áñez

Jeanine Áñez is a Bolivian politician who became the interim president of her country in November 2019, after alleged electoral fraud by incumbent Evo Morales. In November 2020, after free and fair elections there was a peaceful transfer of power. However, on 13 March 2021 she was arrested on charges of “terrorism, sedition and conspiracy”. Accused of plotting a coup d’état against Morales, she has been imprisoned ever since.

Alexei Navalny

Alexei Navalny is a Russian opposition politician, anti-corruption activist and major political opponent of Russian president Vladimir Putin. Known through his LiveJournal blog, YouTube and Twitter accounts, where he has millions of followers Navalny came to international prominence by organising demonstrations, running for office and advocating reforms against corruption in Russia, Putin and his government. In August 2020, while on a trip to Siberia, he was poisoned. He spent months recovering in Berlin, but returned to Moscow in January 2021 where he was arrested. In February he was sentenced to 2½ years in prison. Now incarcerated in a high-security penal colony, he went on a 23-day hunger strike in April to protest the lack of medical care. In June 2021, a Russian court banned Navalny’s regional offices and his Anti-Corruption Foundation.

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