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EU auditors highlight risks of Brexit Adjustment Reserve

EU Reporter Correspondent

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In an opinion published today (1 March), the European Court of Auditors (ECA) raises some concerns over the recent proposal for a Brexit Adjustment Reserve (BAR). This €5 billion fund is a solidarity tool which is intended to support those member states, regions and sectors worst affected by the UK’s withdrawal from the EU. According to the auditors, while the proposal provides flexibility for member states, the design of the reserve creates a number of uncertainties and risks.

The European Commission proposes that 80% of the fund (€4bn) should be granted to member states in the form of pre-financing following the BAR’s adoption. Member states would be allocated their share of pre-financing on the basis of the estimated impact on their economies, taking into account two factors: trade with the UK and fish caught in the UK exclusive economic zone. Applying this allocation method, Ireland would become the main beneficiary of prefinancing, with nearly a quarter (€991 million) of the envelope, followed by the Netherlands (€714m), Germany (€429m), France (€396m) and Belgium (€305m).

“The BAR is an important funding initiative which aims to help mitigate the negative impact of Brexit on the EU member states’ economies,” said Tony Murphy, the member of the European Court of Auditors responsible for the opinion. “We consider that the flexibility provided by the BAR should not create uncertainty for member states.”

Opinion No 1/2021 concerning the proposal for a Regulation of the European Parliament and of the Council establishing the Brexit Adjustment Reserve

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UK to respond to EU legal action over Northern Ireland by mid-May

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Britain has agreed with the European Union that it will respond to the bloc’s legal action over how it has introduced new trading rules for Northern Ireland by mid-May, a spokeswoman for the government said on Wednesday (14 April), writes Elizabeth Piper.

The EU launched legal action against Britain in March for unilaterally changing trading arrangements for Northern Ireland that Brussels says are in breach of the Brexit divorce deal agreed with London last year.

Britain has denied that the move undermines the part of the Brexit deal that governs trade to the British province, saying it extended the grace period for checks on goods moving to Northern Ireland to ease their passage.

“In line with precedent that typically allows two months to respond to proceedings of this kind, we have agreed with the EU that we will respond to the Letter of Formal Notice by mid-May,” the spokeswoman said.

“We’ve been clear that the measures we have taken are lawful and part of a progressive and good faith implementation of the Northern Ireland Protocol.”

Since leaving the EU’s single market at the end of last year, supermarkets in Northern Ireland have seen some shortages of food, and the British government has also delayed introducing checks on parcels and pets.

The difficulties stem from the terms of Britain’s withdrawal agreement, which leaves Northern Ireland in the EU single market for goods and so requires checks on goods arriving there from other parts of the United Kingdom.

The two sides are due to meet on Thursday for talks on Northern Ireland at a meeting unlikely to reach a breakthrough but seen more as a staging post as London and Brussels try to find a way to ease differences over trade.

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UK and EU edge closer to deal on Brexit checks in Northern Ireland

EU Reporter Correspondent

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The UK is edging towards a new deal with the EU on Brexit arrangements for Northern Ireland with the potential for easing border checks on certain goods. Officials in London and Brussels have been involved in intense “technical talks” in the past two weeks over the future checks on food, plants and parcels going from Great Britain to Northern Ireland.

Downing Street’s official spokesman said the discussions had been constructive but that there were “still significant differences that need to be resolved”. The cabinet minister David Frost spoke by phone to the European commission vice-president Maroš Šefčovič on Friday.

Sources said that while progress has been made on Northern Ireland, efforts did not involve removing checks on goods but instead were being concentrated on removing the series of “rolling deadlines” from the implementation of border controls.

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One option is a new series of agreed milestones to be achieved involving agreement with business and civic society before each stage of the protocol is implemented. It would mirror public health experts’ “data not dates” advice to Boris Johnson regarding the easing of lockdown in England.Advertisementhttps://fe51aebfd36b7b7e45cc937da958003b.safeframe.googlesyndication.com/safeframe/1-0-38/html/container.html

The talks began a fortnight ago after relations with the EU reached a low point, with Brussels launching legal action against the UK for taking a unilateral decision to extend the grace period for checks on supermarket goods going from Great Britain to Northern Ireland.

A cabinet source played down the row, claiming the dispute was a result of an unfortunate “mismatch in the communications last month”. This reflects revived urgent efforts to sort out the situation and a recognition in London that a joint approach is the way forward.

This is a change in policy from February when Michael Gove demanded the protocol be delayed until 2023.

Last week the Northern Ireland secretary, Brandon Lewis, told political parties in Belfast that the protocol would not be scrapped, despite demands by the Democratic Unionist party and others, and seven consecutive nights of violence in Northern Ireland.

There is urgent political need to calm the atmosphere in Northern Ireland but there is also recognition in London, Dublin and Brussels that any deal centring on the protocol will not address loyalist protests. Brexit checks down the Irish Sea have enraged loyalist communities who see the trade border as an assault on Northern Ireland’s place in the union of the UK.

EU sources have put it to UK officials that 90% of border checks could disappear if Britain agreed to align food standards with those of the bloc.

Ireland’s Europe minister, Thomas Byrne, told the BBC the situation was “delicate” but he said it would be “excellent” if a veterinary deal could be achieved as it would solve problems both in Northern Ireland and those facing food exporters in Great Britain.

But many see such a food agreement as unlikely because entering into such as deal would represent a complete U-turn for the UK, which opposed regulatory alignment to achieve a hard Brexit.

There have been suggestions that the border checks could be significantly eased if the UK adopted an agreement along the lines of that operating for Australia and New Zealand agrifood trade. However, industry insiders say this would not address loyalist concerns as it still requires paperwork.

The agrifood sector is instead urging the EU and UK to take a pragmatic approach by extending the categories of goods deemed not at risk of crossing into the Republic of Ireland to include food.

The current talks are focusing on a new implementation programme outlined in a plan delivered by London to Brussels a fortnight ago. The EU has also requested real-time access to customs and border check data in Belfast ports.

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UK asks for more time to respond to EU Brexit legal action: RTE TV

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Britain has asked for more time to respond to legal action taken by the European Union over its unilateral decision to ease requirements of the Northern Ireland Protocol, Ireland’s RTE television reported on Wednesday (14 April), writes Conor Humphries.

“The request came in two letters from the UK’s chief Brexit minister David Frost,” RTE correspondent Tony Connelly said in a Twitter post.

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