Considerations on COM(2019)399 - Amending Regulation (EC) No 2012/2002 in order to provide financial assistance to Member States to cover serious financial burden inflicted on them following a no-deal Brexit - Main contents
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| dossier | COM(2019)399 - Amending Regulation (EC) No 2012/2002 in order to provide financial assistance to Member States to cover serious financial ... |
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| document | COM(2019)399  |
| date | September 4, 2019 |
(2) On 29 March 2017, the United Kingdom submitted the notification of its intention to withdraw from the Union pursuant to Article 50 of the Treaty on European Union (TEU). The Treaties cease to apply to the United Kingdom from the date of entry into force of a withdrawal agreement or failing that, two years after that notification, unless the European Council, in agreement with the United Kingdom, unanimously decides to extend that period.
(3) On 11 April 2019, following a request by the United Kingdom, the European Council agreed 9 to extend further 10 the period provided for in Article 50(3) TEU until 31 October 2019. Unless the United Kingdom ratifies the Withdrawal Agreement 11 by 31 October 2019 or requests a third extension, to which the European Council agrees by unanimity, the United Kingdom will leave the Union without an agreement and will become a third country as of 1 November 2019.
(4) To mitigate the economic impact of the withdrawal of the United Kingdom from the Union without an agreement and to show solidarity with the most affected Member States in such exceptional circumstances, Regulation (EC) No 2012/2002 should be amended to support related public expenditure.
(5) As this is an exceptional use of the Fund, its assistance to mitigate serious financial burden, inflicted on the Member States as a direct consequence of the withdrawal of the United Kingdom from the Union without an agreement, should be targeted and limited in time to safeguard the Fund’s original rationale and its capacity to respond to natural disasters.
(6) For the purposes of this exceptional use of the Fund, it is appropriate to establish a minimum amount of estimated damage above which a Member State may apply for assistance from the Fund due to the withdrawal of the United Kingdom from the Union without an agreement. In addition, the eligibility rules need to be amended to include support for public expenditure incurred as a result of the withdrawal of the United Kingdom from the Union without an agreement.
(7) To ensure equal treatment among the Member States, there should be one single deadline applicable to all Member States for the submission of applications for a financial contribution from the Fund, without possibility to extend an application after that deadline to cover additional expenditure.
(8) To maintain the availability of the Fund for natural disasters, its original purpose, a budgetary ceiling for support related to the withdrawal of the United Kingdom from the Union without an agreement should be established.
(9) Assistance from the Fund to mitigate serious financial burden inflicted on the Member States as a consequence of the withdrawal of the United Kingdom from the Union without an agreement should be subject to the same rules for implementation, monitoring, reporting, control and audit as any other interventions of the Fund. In addition, given the broad scope of public expenditure potentially eligible for support, it is important to ensure that other provisions of EU law, in particular the State aid rules, are respected.
(10) The Commission should be able to take a rapid decision to commit specific financial resources and to mobilise them as quickly as possible. The existing provisions for making advance payments should therefore be strengthened by increasing their amounts.
(11) This Regulation should enter into force as a matter of urgency on the day following that of its publication in the Official Journal of the European Union and should apply from the day following that on which the Treaties cease to apply to the United Kingdom pursuant to Article 50(3) TEU unless a withdrawal agreement concluded with the United Kingdom has entered into force by that date.
(12) Regulation (EC) No 2012/2002 should therefore be amended accordingly.