EU council president proposes €5 billion emergency fund to help states worst-hit by Brexit

The European Council President Charles Michel on July 10 reportedly proposed a €5 billion emergency Brexit fund in a bid to help pay any damages caused by Britain’s departure from the bloc. While announcing the proposal for the multi-billion euro emergency fund, Michel said that the reserve would be used to ‘counter unforeseen circumstances’ of Brexit. While calling Britain’s exit from the EU ‘challenging’, Michel asked the Commission to carry out a ‘need assessment’ in order to identify the states, regions and sectors in need of a post-Brexit boost. 

According to an international media outlet, Michel aims to have the fund in place by the end of the next year. He reportedly said that Brexit will have consequences in Europe and that is why he thinks that it is necessary for the European Commission to prepare a needs assessment, which could help the authorities imagine more concrete proposals and allocation criteria to support regions and sectors that would be most affected. 

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While some European leaders reportedly said that the fund will be used regardless of the outcome of the trade negotiations between the bloc and Britain, others said that there is a possibility that the fund could be slashed in size if a free-trade agreement is reached before the end of the year. The recent proposal by the EU chief comes as part of his proposal for the bloc’s next seven-year budget and a coronavirus recovery fund. 

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‘Significant divergence’ remain in Brexit talks 

Meanwhile, the EU and the UK negotiators have yet to find a way to overcome ‘significant divergence’ in their attempt to seal a post-Brexit compromise. The two sides are struggling to secure a new trade deal before the end of the year when Britain will effectively exit the EU’s tariff-free economic zone. The two parties have been facing a number of issues, including regulations for businesses and the fishing industry. 

As per reports, both the EU and UK have shown signs of frustration due to the lack of progress with regards to the trade deal. EU’s chief negotiator Michel Barnier, and David Frost, his counterpart on the UK side, has claimed that there is serious disagreement between the two sides. Barnier had also stated that the British government has failed to reciprocate the same level of understanding and flexibility that the EU has shown Britain.

(Image: @PopescuCo/Twitter) 

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