Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Council Regulation (EC) No 2012/2002 in order to provide financial assistance to Member States to cover serious financial burden inflicted on them following a withdrawal of the United Kingdom from the Union without an agreement
1. The EUSF was established in 2002 to provide financial assistance to eligible states affected by major natural disasters or extraordinary regional disasters.
2. This proposal seeks to define a “No Deal” exit as a “major disaster” where the mobilisation of the EUSF would be justified in order to mitigate the effect on Member States; the UK will not be eligible to apply for these funds.
3. The total use of the EUSF in relation to “No Deal” will be limited to €591,65 million (£535,83 million) (i.e. 50% of the total available amount for 2019 and 2020).
European Globalisation Adjustment Fund (EGF)
4. The EGF is designed to provide support for workers made redundant as a result of major structural changes in world trade patterns due to globalisation, in situations where these redundancies have a significant adverse impact on the regional or local economy. Specifically, the EGF currently provides funding to cover redundancies caused by offshoring of jobs to third countries, a serious shift in Union trade in goods and services, or a rapid decline of the Union market share in a given sector.
5. The Commission has proposed an amendment to the EGF’s scope to include “workers made redundant in areas, sectors, territories or labour markets suffering serious economic disruption” because of a “No Deal” exit; the UK will not be eligible to apply for these funds.