By Asmau Ahmad with agency report
The European Union (EU) on Tuesday approves a five billion euro fund designed to help member states cushion the negative impact of Brexit.
“The fund will support the hardest-hit regions, sectors, and communities to cover extra costs compensate for losses.
“The counter other adverse economic and social effects resulting directly from Britain’s withdrawal from the EU.
EU said that the fund will be used to support public and private businesses facing disruption of trade flows, including new costs for custom checks and administrative procedures.
“The UK’s withdrawal from EU created an unprecedented situation, member of states will have the flexibility to decide on the best actions to take so as to counter various negative consequences.’’
Zvonko Cernac, Slovenian Minister for Development and European Cohesion Policy said the goal of the fund is to help the most vulnerable navigates through a difficult period of adjustment in the aftermath of Brexit.
“The reserve, which is a special one-off emergency instrument, will finance measures introduced from Jan. 1, 2020 to Dec. 31, 2023, and to cover expenditure incurred before the expiry of the transition period.
“EU will determine three factors in its allocation: importance of trade with the UK, importance of fisheries in the UK’s exclusive economic zone and importance of neighbouring links for the maritime border regions with the UK.”