The Council of the European Union has approved an amendment to the Brexit Adjustment Reserve (BAR) regulation, revising financial allocations to Member States to address the ongoing economic impact of the UK's withdrawal. The decision, formalised on 14 January 2026, follows an inter-institutional agreement reached with the European Parliament, with Bulgaria abstaining from the vote. The amendment updates Regulation (EU) 2021/1755, which originally established the €5.4 billion reserve to support sectors and regions most affected by Brexit.
Procedural finalisation The Council's approval, documented in an I/A item note, endorses the European Parliament's first-reading position, effectively concluding the legislative process. The revised allocations aim to better reflect the actual economic disruptions experienced by Member States since the UK's departure, particularly in trade, fisheries, and supply chains. Bulgaria's abstention signals reservations about the distribution formula, though no formal objections were raised.
Policy orientations and trade-offs The amendment introduces updated financial envelopes for Member States, prioritising those with the highest exposure to Brexit-related losses. This involves a trade-off between targeting support to the hardest-hit regions and maintaining equitable distribution across all Member States. The revision also extends the eligibility period for expenditures, allowing Member States more time to claim funds for projects implemented since 2020. Critics argue that the adjustments may still fall short for sectors like fisheries and small businesses, while supporters highlight the flexibility provided.
Impact on stakeholders - EU producers and businesses in affected sectors (e.g., fisheries, manufacturing) will benefit from additional funding to offset trade disruptions and new customs procedures. - National authorities gain extended deadlines and revised allocations, easing administrative pressure but requiring updated project planning. - EU taxpayers bear the cost of the increased reserve, though the total remains within the original budget ceiling. - Bulgaria abstained, indicating potential dissatisfaction with the allocation methodology, though the impact on its stakeholders is limited.
Expected institutional follow-up The European Parliament is expected to formally adopt its first-reading position shortly, after which the amended regulation will be published in the Official Journal. Member States will then have six months to submit revised spending plans to the European Commission. The Commission will monitor implementation and may propose further adjustments if economic conditions change.
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