Financial assistance to Member States and European undertakings in the event of Brexit without agreement

Brexit without an agreement would have important consequences for the economy, the labour market and public finances in the Member States that have particularly close trade and financial relations with the United Kingdom. The European Commission has therefore proposed the adoption of financial support measures to mitigate the impact of no agreement in the most affected areas and sectors (especially small and medium-sized companies with a significant exposure to the United Kingdom and public administrations in Member States). The measures will be granted by the European Union Solidarity Fund (EUSF), established in 2002 to support EU Member States and accession countries affected by major natural disasters such as floods, storms and earthquakes. The EUSF can be mobilized at the request of the country concerned if the scale of the disaster warrants intervention at European level. The Commission’s proposal aims to extend the scope of the EUSF to certain types of additional public expenditure as a result of a withdrawal of the United Kingdom from the European Union without an agreement.