The International Trade Council is pleased to announce that the European Council has approved a 5 billion-euro ($5.8 billion) reserve to help EU businesses navigate the short-term effects of Brexit. This fund aims to cover additional costs and compensate losses resulting from the United Kingdom's withdrawal from the 27-nation trade bloc.
Brexit has significantly impacted various sectors of the EU economy, with the fishing industry being particularly affected. The European Commission has estimated that EU fisheries will face a 25% reduction in their catch value from UK waters.
Despite the December trade agreement that ensures tariff-free trade, Britain's trade with the EU has experienced a sharp decline. The newly adopted reserve will provide much-needed funding to the most affected European regions and companies, benefiting both public and private businesses.
Zvonko Cernac, Slovenia's Minister for Development and European Cohesion Policy, stated, "The prompt adoption of the reserve means that much-needed funding will soon be made available to the worst affected European regions and companies." Slovenia currently holds the European Council's rotating presidency.
Fishing rights were a significant obstacle during Brexit negotiations. The December trade agreement allows EU vessels to continue fishing in UK waters, albeit with a reduced share of catches. The relief plan requires participating EU nations to allocate a minimum of 238 million euros ($278 million) for fisheries, with the option to use more of their allowances to support the sector.
The International Trade Council is optimistic that this reserve will help mitigate the challenges faced by EU businesses as a result of Brexit and promote economic stability in the region.