Bernard Durkan (Kildare North, Fine Gael)
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220. To ask the Minister for Finance if he is satisfied that all countries throughout the European Union realise the degree to which Ireland’s economy is likely to be more affected than most others by Brexit; if extra supportive measures might be forthcoming in the event of a greater than expected negative impact; and if he will make a statement on the matter. [39469/20]

Paschal Donohoe (Dublin Central, Fine Gael)
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In line with the Government’s overall approach, officials in my Department have been raising Ireland’s position as the Member State most impacted by Brexit with the European Commission, and within relevant European Union fora, since before the UK referendum in 2016.

In July 2020, as part of the 2021-2027 Multiannual Financial Framework (MFF) negotiations, leaders agreed on a new €5 billion Brexit Adjustment Reserve, which will be established outside the MFF ceilings to counter adverse consequences in Member States and sectors that are worst affected by Brexit.

The Commission has been invited by the European Council to present a proposal on the instrument by November 2020. We now expect this proposal to be published in the coming days. At this point in time, I have no indication in relation to potential allocations for Ireland or any Member State. Once the proposal has been published, my Department will begin analysis of the proposal and negotiations at Council level will then begin between the Member States. My Department will work to ensure that Ireland receives a share of the reserve that reflects the impact on Ireland as the worst affected Member State.

The Brexit Adjustment Reserve allocation will complement and enhance the comprehensive supports put in place by Budget 2021, which assumes the transition period ends without agreement and that a widespread vaccination for Covid-19 will not be available before the end of next year. Budget 2021 provides €340 million for measures to prepare for Brexit, through the continuation of existing measures and new supports for sectors and enterprises likely to be most affected. This comes on top of over €700 million in successive Budgets since 2017. In addition, the Recovery Fund of €3.4 billion will allow specific, targeted measures to be introduced when and where the need arises in response to both Brexit and Covid-19.